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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Chiara Company’s management has made the projections shown in Table 19.5 . Use this Excel spreadsheet as a starting point to value the company as a whole. The WACC for
|
Year: |
-2 |
-1 |
0 |
1 |
2 |
3 |
4 |
5 |
 | ||||
|
1. Sales 35,348 |
35,348 |
39,357 |
40,123 |
36,351 |
30,155 |
28,345 |
29,982 |
30,450 |
|||||
|
2. Cost of goods sold 17,834 |
17,834 |
18,564 |
22,879 |
21,678 |
17,560 |
16,459 |
15,631 |
14,987 |
|||||
|
3. Other costs 6,968 |
6.968 |
7,645 |
8,025 |
6,797 |
5,078 |
4,678 |
4,987 |
5,134 |
|||||
|
4. EBITDA (1–2–3) 10,546 |
10,546 |
13,148 |
9,219 |
7,876 |
7,517 |
7,208 |
9,364 |
10,329 |
|||||
|
5. Depreciation 5,671 |
5,671 |
5,745 |
5,678 |
5,890 |
5,670 |
5,908 |
6,107 |
5,908 |
|||||
|
6. EBIT (Pretax profit) (4–5) 4,875 |
4,875 |
7,403 |
3,541 |
1,986 |
1,847 |
1,300 |
3,257 |
4,421 |
|||||
|
7. Tax at 35% 1,706 |
1,706 |
2,591 |
1,239 |
695 |
646 |
455 |
1,140 |
1,547 |
|||||
|
8. Profit after tax (6–7) 3,169 |
3,169 |
4,812 |
2,302 |
1,291 |
1,201 |
845 |
2,117 |
2,874 |
|||||
|
9. Change in working capital 325 |
325 |
566 |
784 |
-54 |
-342 |
-245 |
127 |
235 |
|||||
|
10. Investment (change in gross fixed assets) 5,235 |
5,235 |
6,467 |
6,547 |
7,345 |
5,398 |
5,470 |
6,420 |
6,598 |
|||||
| Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
Cash flow projections for Chiara Corp. ($ thousands).
Chiara is 12% and the long-run growth rate after year 5 is 4%. The company has $5 million debt and 865,000 shares outstanding. What is the value per share?
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