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BD_DC18

Course: BUS 438, Winter 2012
School: Cal Poly
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to Solutions Chapter 18 Data Case All numbers except per share data in millions St. Price Mar-06 108.9 Year FCF's 1c 0 (1,500) 2 Mar-05 74.38 Mar-04 74.5 Mar-03 44.95 1 220 10% 2 242 3 266 Mar-05 65,907.00 Mar-04 55,177.00 Mar-03 47,123.00 77,575.16 Growth 3 3aii YTM--Cost of Debt 5% 4 280 5 293 6 308 7 324 8 340 9 357 10 375 5.267% 3b 3b 10-year Bond 3bii Beta 4.52% 0.56 3biii Cost of...

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to Solutions Chapter 18 Data Case All numbers except per share data in millions St. Price Mar-06 108.9 Year FCF's 1c 0 (1,500) 2 Mar-05 74.38 Mar-04 74.5 Mar-03 44.95 1 220 10% 2 242 3 266 Mar-05 65,907.00 Mar-04 55,177.00 Mar-03 47,123.00 77,575.16 Growth 3 3aii YTM--Cost of Debt 5% 4 280 5 293 6 308 7 324 8 340 9 357 10 375 5.267% 3b 3b 10-year Bond 3bii Beta 4.52% 0.56 3biii Cost of Equity 7.0400% 3c 3ci Net Debt Mar-06 74,994.00 3cii Equity 177,150.90 122,581.96 126,243.23 3ciii Enterprise Value 252,144.90 188,488.96 3civ Debt to Value Target Debt 3d Tax Rate 3e Levered WACC 4 NPV-WACC 5 Unlevered WACC Unlevered Value Levered Value Debt Capacity 181,420.23 124,698.16 0.2974242227 0.34965974 0.30413918 0.37789652 33.23% 36.64% 5.81% $674.39 6.45% $2,104 2,174 723 PV Tax Shield 1,807 601 1,633 543 1,434 477 1,209 402 956 318 672 223 354 118 36.41 13.34 34.30 12.57 31.63 11.59 28.57 10.47 25.10 9.20 21.16 7.76 16.73 6.13 11.76 4.31 6.20 2.27 $70.69 Levered Value 1,960 651 38.05 13.94 Interest Pmts Interest Tax Shield 2,081 691 $2,174.39 NPV--APV $674.39 FCF Valuation After-tax Interest Pmts 24.1097658 23.0710632 21.7280792 20.038743 18.103681 15.90124 13.4081383 10.599353 7.44800334 3.925218 Net Borrowing 723 (31) (40) (51) (58) (66) (75) (84) (94) (106) (118) FCF to Equity (777) 165 179 194 201 209 218 226 235 244 253 NPV 674.39 Income Statements All amounts in millions except per share amounts. Operating Revenue T otal Revenue Adjustment to Revenue Cost of Sales Cost of Sales with Depreciation Gross Margin Mar-06 Mar-05 Mar-04 Mar-03 (TTM) (TTM) (TTM) (TTM) 179,083.00 172,749.00 163,637.00 128,965.00 179,083.00 172,749.00 163,637.00 128,965.00 0 0 133,938.00 129,178.00 122,061.00 0 0 95,404.00 144,249.00 138,469.00 131,238.00 102,647.00 R&D SG&A Advertising Operating Profit 0 0 0 0 45,145.00 43,571.00 41,576.00 33,561.00 0 Gross Operating Profit 0 0 0 18,844.00 18,709.00 16,627.00 15,739.00 0 0 0 0 15,990.00 15,571.00 15,772.00 10,579.00 Operating Profit before Depreciation (EBITDA) 26,301.00 24,862.00 24,949.00 17,822.00 Depreciation 10,311.00 9,291.00 9,177.00 7,243.00 Depreciation Unreconciled 0 0 0 0 Amortization 0 0 0 Amortization of Intangibles 0 0 0 0 15,990.00 15,571.00 15,772.00 10,579.00 800 629 526 438 Earnings from Equity Interest 1,399.00 Other Income, Net Operating Income After Depreciation Interest Income 0 1,299.00 1,138.00 439 1,163.00 316 605 -559 Income Acquired in Process R&D 0 0 0 0 Interest Restructuring and M&A 0 0 0 Other Special Charges 0 0 0 0 19,352.00 17,815.00 18,041.00 10,897.00 184 177 196 253 19,168.00 17,638.00 17,845.00 10,644.00 6,769.00 6,126.00 6,446.00 4,301.00 718 605 404 96 Preferred Securities of Subsidiary Trust 0 0 0 0 Net Income from Continuing Operations 11,681.00 10,907.00 10,995.00 6,247.00 Total Income Avail for Interest Expense (EBIT) Interest Expense Income Before Tax (EBT) Income Taxes Minority Interest Net Income from Discontinued Ops. 0 0 0 0 0 11,681.00 10,907.00 10,995.00 6,247.00 Extraordinary Income/Losses 0 0 0 0 Income from Cum. Effect of Acct Chg 0 0 0 0 Income from Tax Loss Carryforward 0 0 0 Other Gains (Losses) 0 0 0 0 Total Net Income 11,681.00 10,907.00 10,995.00 6,247.00 Normalized Income 11,681.00 Net Income Available for Common Net Income from Total Operations 0 10,907.00 10,995.00 6,247.00 11,681.00 10,907.00 10,995.00 6,247.00 Preferred Dividends 0 0 0 0 Excise Taxes 0 0 0 0 7.18 6.62 6.48 3.52 Per Share Data Basic EPS from Continuing Ops. Basic EPS from Discontinued Ops. 0 0 0 0 7.18 6.62 6.48 3.52 Basic EPS from Extraordinary Inc. 0 0 0 0 Basic EPS from Cum Effect of Accounting Chg 0 0 0 Basic EPS from Other Gains (Losses) 0 0 0 0 Basic EPS Total 7.18 6.62 6.48 3.52 Basic Normalized Net Income/Share 7.18 6.62 6.48 3.52 Diluted EPS from Continuing Ops. 7.18 6.62 6.48 3.52 Basic EPS from Total Operations Diluted EPS from Discontinued Ops. 0 0 0 0 0 7.18 6.62 6.48 3.52 Diluted EPS from Extraordinary Inc. 0 0 0 0 Diluted from EPS Cum Effect of Accounting Chg 0 0 0 Diluted EPS from Other Gains (Losses) 0 0 0 0 Diluted EPS Total 7.18 6.62 6.48 3.52 Diluted Normalized Net Income/Share 7.18 6.62 6.48 3.52 Dividends Paid per Share 1.26 0.46 0.36 0.51 Basic Weighted Shares Outstanding 1,626.73 1,648.05 1,694.54 1,725.81 Diluted Weighted Shares Outstanding 1,627.25 1,648.38 1,694.69 1,725.81 Diluted EPS from Total Operations 0 Additional Data All amounts in millions except per share amounts. Mar-06 Mar-05 Mar-04 Mar-03 (TTM) (TTM) (TTM) (TTM) Balance Sheets Assets Cash and Equivalents Restricted Cash Marketable Securities Accounts Receivable 13,332.00 13,843.00 16,367.00 13,245.00 0 0 0 5,821.00 5,661.00 4,891.00 5,498.00 16,826.00 15,080.00 14,492.00 12,278.00 Loans Receivable 0 Other Receivable 33,246.00 32,177.00 28,571.00 25,117.00 50,072.00 47,257.00 43,063.00 37,395.00 Raw Materials 0 0 1,468.00 1,127.00 Work In Progress 0 0 1,567.00 Purchased Components 0 0 0 0 Finished Goods 0 0 6,786.00 5,919.00 13,770.00 12,192.00 429 378 Receivables Other Inventories Inventories -Adj Allowances Inventories Prepaid Expenses Current Deferred Income Taxes Other Current Assets T otal Current Assets Gross Fixed Assets (Plant, Prop. & Equip.) Accumulated Depreciation & Depletion 0 0 0 0 1,110.00 0 0 0 0 13,770.00 12,192.00 10,250.00 8,534.00 3,779.00 4,684.00 4,825.00 3,856.00 4,422.00 4,439.00 4,325.00 3,204.00 0 0 0 0 91,196.00 88,076.00 83,721.00 71,732.00 134,712.00 131,171.00 126,429.00 103,890.00 74,681.00 77,098.00 75,765.00 60,596.00 60,031.00 54,073.00 50,664.00 43,294.00 0 0 0 0 Cost in Excess 0 0 0 Non-Current Deferred Income Taxes 0 0 0 0 92,848.00 84,897.00 74,152.00 52,636.00 152,879.00 138,970.00 124,816.00 95,930.00 Net Fixed Assets Intangibles Other Non-Current Assets T otal Non Current Assets Total Assets 0 244,075.00 227,046.00 208,537.00 167,662.00 Liabilities Accounts Payable Notes Payable 17,726.00 17,324.00 16,173.00 12,741.00 0 0 0 0 Short Term Debt 40,410.00 32,961.00 31,358.00 25,946.00 Accrued Expenses 12,439.00 12,030.00 10,723.00 8,848.00 Accrued Liabilities 0 0 0 0 Deferred Revenues 0 0 0 Current Deferred Income Taxes 0 0 0 0 14,620.00 14,446.00 13,635.00 11,150.00 85,194.00 76,760.00 71,889.00 58,685.00 47,916.00 46,789.00 40,186.00 34,422.00 Other Current Liabilities T otal Current Liabilities Long Term Debt Capital Lease Obligations 0 0 0 0 0 Deferred Income Taxes 9,285.00 7,573.00 7,366.00 3,086.00 Other Non-Current Liabilities 6,960.00 6,823.00 7,490.00 9,601.00 Minority Interest 2,625.00 5,008.00 4,710.00 4,223.00 Preferred Securities of Subsidiary Trust 0 0 0 Preferred Equity outside Stock Equity 0 0 0 0 69,169.00 65,895.00 59,265.00 49,734.00 T otal Non-Current Liabilities Total Liabilities 0 154,364.00 142,656.00 131,154.00 108,419.00 Stockholder's Equity Preferred Stock Equity Common Stock Equity Common Par Additional Paid In Capital Cumulative Translation Adjustment Retained Earnings T reasury Stock Other Equity Adjustments T otal Equity T otal Capitalization Total Liabilities & Stock Equity 0 0 0 0 89,711.00 84,389.00 77,383.00 59,243.00 3,373.00 3,704.00 3,757.00 3,303.00 4,207.00 4,625.00 4,685.00 4,108.00 0 0 0 0 88,856.00 87,069.00 78,780.00 60,747.00 -10,440.00 -10,257.00 -7,903.00 -3,888.00 3,715.00 -753 -1,936.00 -5,027.00 89,711.00 84,389.00 77,383.00 59,243.00 137,627.00 131,178.00 117,569.00 93,665.00 244,075.00 227,045.00 208,537.00 167,662.00 Additional Data Cash Flow 21,992.00 20,198.00 20,172.00 13,490.00 Working Capital 6,001.00 11,315.00 11,832.00 13,047.00 Free Cash Flow -4,259.00 2,630.00 6,214.00 3,029.00 137,627.00 131,178.00 117,569.00 93,665.00 Invested Capital Share Data Shares Outstanding Common Class Only Preferred Shares 1,805.00 1,634.04 1,725.53 1,725.53 0 0 0 0 Total Ordinary Shares 3,610.00 3,268.08 3,451.06 3,451.06 Total Common Shares Outstanding 1,805.00 1,634.04 1,725.53 1,725.53 368.24 170.96 79.47 79.47 Treasury Shares Tax Rate 0.353141 0.347318 0.361222 0.404077
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