FIN 6301 PROJECT #1

Name:

SECTION 1 - FINANCIALS
2010

2011

Forecasted
2013

2012

Income Statement

Chen, Xi

Forecasted
2014

CAGR
2010-2012

3)

Total Revenue
1)
COGS
Operating Expenses
Depreciation Expense
Interest Expense
All Other Items
Net Income

3,600,000
2,877,000
387,000
108,667
37,333
73,000
117,000

4,408,667
3,352,667
415,333
106,667
42,667
174,000
317,333

5,016,000
3,786,333
527,667
108,333
46,933
51,667
495,067

Cash
Accounts Receivables
Inventory
All other current assets
Total Current Assets

729,000
1,974,000
1,341,000
758,000
4,802,000

792,567
2,249,000
1,977,000
1,040,000
6,058,567

1,021,200
2,520,000
2,141,000
946,000
6,628,200

LongTerm Assets
All Other Items

2,896,000
917,000

2,978,000
1,135,000

Total Assets

8,615,000

Accounts Payable
Curr Portion LT Debt
All other items
Total Current Liabilities

2011

2012

4)

2)

5,966,107
4,371,553
620,571
108,159
52,907
43,056
769,861

COMMON SIZE
2010

7,096,178
5,047,224
729,832
107,984
59,642
35,881
1,115,615

18.0%
14.7%
16.8%
-0.2%
12.1%
-15.9%

100.0%
79.9%
10.8%
3.0%
1.0%
2.0%
3.3%

100.0%
76.0%
9.4%
2.4%
1.0%
3.9%
7.2%

100.0%
75.5%
10.5%
2.2%
0.9%
1.0%
9.9%

1,272,679
2,863,624
2,733,483
1,062,364
7,932,150

1,607,638
3,254,104
3,489,926
1,193,041
9,544,709

18.4%
13.0%
26.4%
11.7%
17.5%

8.5%
22.9%
15.6%
8.8%
55.7%

7.8%
22.1%
19.4%
10.2%
59.6%

9.1%
22.5%
19.1%
8.4%
59.2%

3,126,000
1,451,000

3,253,850
1,843,936

3,386,929
2,343,282

3.9%
25.8%

33.6%
10.6%

29.3%
11.2%

27.9%
12.9%

10,171,567

11,205,200

13,029,936

15,274,919

14.0%

100.0%

100.0%

100.0%

2,066,000
37,000
128,000
2,231,000

2,794,900
82,000
182,000
3,058,900

3,219,800
28,000
208,000
3,455,800

4,059,545
24,176
268,006
4,351,727

5,118,300
20,874
345,324
5,484,498

24.8%
-13.0%
27.5%
24.5%

24.0%
0.4%
1.5%
25.9%

27.5%
0.8%
1.8%
30.1%

28.7%
0.2%
1.9%
30.8%

Long Term Debt

All Other Items
Total Long Term Liabilities

637,000
1,974,000
2,611,000

709,000
1,763,000
2,472,000

658,000
1,861,000
2,519,000

669,296
1,804,247
2,473,543

680,786
1,749,224
2,430,011

1.6%
-2.9%
-1.8%

7.4%
22.9%
30.3%

7.0%
17.3%
24.3%

5.9%
16.6%
22.5%

Total Liabilities

4,842,000

5,530,900

5,974,800

6,825,270

7,914,509

11.1%

56.2%

54.4%

53.3%

Total Equity

3,773,000

4,640,667

5,230,400

6,204,667

7,360,410

17.7%

43.8%

45.6%

46.7%

Balance Sheet
plug

balance check

5)

2010

plug

2011

(0)

(0)

Forecasted
2013

2012

Forecasted
2014

Cash Ratio
Quick Ratio
Current Ratio

0.33
1.55
2.15

0.26
1.33
1.98

0.30
1.30
1.92

0.29
1.19
1.82

0.29
1.10
1.74

Debt to Equity

1.28

1.19

1.14

1.10

1.08

200
170
262
2,571,000

175
181
265
2,999,667

174
198
290
3,172,400

165
203
304
3,580,423

157
225
332
4,060,210

Days Receivable
Days Inventory
Days Payable
Net Working Capital
6) Cash Conversion Cycle

108

91

82

64

51

SECTION 2- EQUITY AND VALUATION (add rows to show work, label answers)

Name:
7) Additional capital:

2010 NWC

2,571,000 2012 NWC

8) Addl cost (savings):

3,172,400 Difference

Difference @ 8% $

9) Interest rate %:

2012 Interest Exp

10) 10 yr pymt:

Years

46,933
10

2012 Debt
Pymt/Yr

# of Shares outstanding

188,800

14) Retention ratio:

48,112.0

PV

6.84%
686,000 Pymt

2010
117,000

2011
317,333

2011
200,000 $

2012
211,000

DPS/Div per Share $

2010
0.93 $

2011
1.06 $

2012
1.12

1.12 Growth Rate

1.12

17) Market cap:

Calculated Price per share

D1
$

10.3%
$

1.23

19) IRR%

IRR

20) NPV:

NPV

2010
-49.6%
2013 DPS
1 $

113,421,550.1
98,627,434.9
5.0 yrs
16.7%
$ 52,252,235.1

2011
37.0%
# of Years

1.233

10.3%

26.14 Shares outstanding

SECTION 3 - INVESTMENT OPPORTUNITY (add rows to show work, label answers)

Year
0
1
2
3
R
Cash Flows
15%
Factory
-750000000
Savings
150000000
150000000
150000000
Total Cash Flow
(750,000,000.0)
150,000,000.0
150,000,000.0
150,000,000.0
discouted cash flows
(750,000,000.0)
130,434,782.6
18) Payback and Discounted Payback:
Payback

9.8%

2012
495,067 Ret Ratio
# of Years

15) DPS for 2013, 2015 2012 DPS

R
16) PV:
15%
D0

(50,513)

2010
175,000 $

2010 to 2012 DPS CAGR

Net Income

13) DPS CAGR:

Chen, Xi

601,400

686,000 Int Rate %

11) Dividends

12) DPS:

2012
57.4%

2016 DPS
3 $

PV or Price

188,800 Market Cap M$

1.65

26.14

4,936,121

10

150000000
150,000,000.0

150000000
150,000,000.0

150000000
150,000,000.0

150000000
150,000,000.0

150000000
150,000,000.0

150000000
150,000,000.0

200000000
150000000
350,000,000.0

85,762,986.8

74,576,510.3

42,639,361.8

86,514,647.1

64,849,139.4
Discounted payback

56,390,556.0
49,035,266.1
9.40 yrs
leftover

(34,262,412.0)

FINANCIALS (ALL NUMBERS ARE IN 000's)

2010
3,600,000
2,877,000
723,000

2011
4,408,667
3,352,667
1,056,000

2012
5,016,000
3,786,333
1,229,667

Operating Expenses:
Research & Development
120,667
Selling, General, and Admin (SG&A)
304,667
Non Recurring
33,000
Depreciation
108,667
Other Operating Expenses
(71,333)

138,000
394,333
(117,000)
106,667
-

209,667
605,333
(287,333)
108,333
-

Total Revenue
Cost of Revenue
Gross Profit

Total Operating Expenses

495,667

522,000

636,000

Operating Income or Loss

227,333

534,000

593,667

(2,333)

18,333

51,667

Interest Expense
Income Tax Expense
Minority Interest

37,333
52,000
(18,667)

42,667
159,000
(33,333)

46,933
241,667
(32,667)

Other Adjustments

(37,333)

(66,667)

105,667

Net Income

117,000

317,333

495,067

Current Assets
Cash and Cash Equivalents
Short Term Investments
Net Receivables
Inventory
Other Current Assets
Total Current Assets
Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Accumulated Amortization
Other Assets
Deferred Long Term Asset Charges
Total Assets

Other Income

5.5%

5.4%

6.8%

Liabilities
Current Liabilities
Accounts Payable
Short/Current Portion of Long Term Debt
Other Current Liabilities
Total Current Liabilities
Long Term Debt
Other Liabilities
Deferred Long Term Liability Charges
Minority Interest
Negative Goodwill

OTHER FINANCIAL INFORMAITON

Total Liabilities
Dividends Paid
Shares of Stock Outstanding

175,000
188,800

200,000
188,800

211,000
188,800

Equity
Misc Stocks Options Warrants
Redeemable Preferred Stock
Preferred Stock
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholders Equity
Total Stockholders Equity

2010

2011

2012

729,000
190,000
1,974,000
1,341,000
568,000
4,802,000

792,567
339,000
2,249,000
1,977,000
701,000
6,058,567

1,021,200
277,000
2,520,000
2,141,000
669,000
6,628,200

574,000
1,886,000
364,000
228,000
325,000
436,000

734,000
2,041,000
367,000
222,000
546,000
203,000

838,000
2,288,000
339,000
227,000
885,000
-

8,615,000

10,171,567

11,205,200

2,066,000
37,000
128,000
2,231,000

2,794,900
82,000
182,000
3,058,900

3,219,800
28,000
208,000
3,455,800

637,000
1,727,000
247,000
-

709,000
1,437,000
326,000
-

658,000
1,522,000
339,000
-

4,842,000

5,530,900

5,974,800

1,860,000
3,575,000
(731,000)
(931,000)

1,934,000
3,692,333
(964,000)
(21,667)

2,001,000
3,976,400
(1,587,000)
840,000

3,773,000

4,640,667

5,230,400