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    Shanu George
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    Fundamentals of Advanced Corporate Fnance

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    PPT Examples - Fin 321 Debt&Equity Capital

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    Fundamentals of Advanced Corporate Fnance

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views4 pages

    Examples - Fin 321 Debt&Equity Capital

    Uploaded by

    Shanu George
    Fundamentals of Advanced Corporate Fnance

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Part 1)

    50000 Units
    260 Price
    110 Cost
    Year

    Lab
    $7,500,000.00
    Revenues
    COGS
    SG&A
    Depreciation
    Incremental EBIT
    Incremental Earnings (40% tax)

    $13,000,000.00
    $5,500,000.00
    $2,800,000.00
    $1,500,000.00
    $3,200,000.00
    $1,920,000.00

    $13,000,000.00
    $5,500,000.00
    $2,800,000.00
    $1,500,000.00
    $3,200,000.00
    $1,920,000.00

    $13,000,000.00
    $5,500,000.00
    $2,800,000.00
    $1,500,000.00
    $3,200,000.00
    $1,920,000.00

    Receivables
    Payables
    Net Working Capital
    Change in NWC

    $1,950,000.00
    $825,000.00
    $1,125,000.00
    $1,125,000.00

    $1,950,000.00
    $825,000.00
    $1,125,000.00
    $0.00

    $1,950,000.00
    $825,000.00
    $1,125,000.00
    $0.00

    Earnings
    Depreciation
    CapEx
    Change in NWC

    $1,920,000.00
    $1,500,000.00
    0
    -1125000
    $2,295,000.00

    $1,920,000.00
    $1,500,000.00
    0
    0
    $3,420,000.00

    $1,920,000.00
    $1,500,000.00
    0
    0
    $3,420,000.00

    $2,049,107.14

    $2,726,403.06

    $2,434,288.45

    Part 2)

    $7,500,000.00
    Part 3)

    Part 4)

    PV of CFs
    WACC

    $7,500,000.00
    12%

    NPV

    $2,862,081.81

    $13,000,000.00
    $5,500,000.00
    $2,800,000.00
    $1,500,000.00
    $3,200,000.00
    $1,920,000.00

    $1,500,000.00
    $1,500,000.00
    $900,000.00

    $1,950,000.00
    $825,000.00
    $1,125,000.00
    $0.00

    $0.00
    $0.00
    $0.00
    $1,125,000.00

    $1,920,000.00
    $1,500,000.00
    0
    0
    $3,420,000.00

    $900,000.00
    $1,500,000.00
    0
    1125000
    $1,725,000.00

    $2,173,471.83

    $978,811.33

    Part 1)

    0
    2009

    Sales
    EBIT
    EBIT(1-T)
    D&A
    CapEx

    1
    2
    2010
    2011
    10%
    9%
    $19,200,000,000.00 $21,120,000,000.00 $23,020,800,000.00
    $1,920,000,000.00 $2,112,000,000.00 $2,302,080,000.00
    $1,605,120,000.00 $1,749,580,800.00
    $
    $
    $
    $
    $
    $
    -

    Increase in NWC

    $192,000,000.00

    FCF
    WACC

    $190,080,000.00

    $ 1,413,120,000.00 $ 1,559,500,800.00
    10%
    PV
    Enterprise Value
    Debt
    Cash

    $1,284,654,545.45

    $1,288,843,636.36

    $32,542,444,954.48
    $32,000,000.00
    $2,300,000,000.00
    $34,810,444,954.48
    Shares Outstanding
    $

    71.63

    3
    4
    5
    6
    2012
    2013
    2014
    2015
    8%
    7%
    6%
    5%
    $24,862,464,000.00 $26,602,836,480.00 $28,199,006,668.80 $29,608,957,002.24
    $2,486,246,400.00 $2,660,283,648.00 $2,819,900,666.88 $2,960,895,700.22
    $1,889,547,264.00 $2,021,815,572.48 $2,143,124,506.83 $2,250,280,732.17
    $
    $
    $
    $
    $
    $
    $
    $
    $184,166,400.00

    $174,037,248.00

    $159,617,018.88

    $140,995,033.34

    $ 1,705,380,864.00 $ 1,847,778,324.48 $ 1,983,507,487.95 $ 2,109,285,698.83


    $44,294,999,675.35
    $1,281,277,884.30 $1,262,057,458.15 $1,231,602,093.71 $26,194,009,336.50

    486000000.00

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