Session_2_Assignment_1 (7).xlsx

# Session_2_Assignment_1 (7).xlsx - ASSIGNMENT_1 Groups of 3...

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ASSIGNME Groups of 3 m Dead Line: Ap Respond to th 1.- 2.- 3.- 4.- 5.-

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ENT_1 members. Only one member of the group have to upload the assignment on Moodle. pril 26th 23:50 (midnight) he following questions: Fill all the ratios required in the Solutions sheet Calculate the Company Value according to your assumptions (explained assumptions) Calculate the Equity Value according to your assumptions (explained assumptions) In case of the acquisition of the company, is it going to create or destroy value to the buyer? Calculate the value creation or value destruction of the acquisition?
Bhavik Mehta Sabri Abdelke Alami Merrouni Thami 38 15 15 15 15

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CONSOLIDATED 2008 2009E 2010E 2008 Effective Income Tax 19% 28% 24% 37% NOPAT 34,145 31,222 24,447 2,344 DOL 0.29 3.34 0.32 DFL 1.02 1.02 1.03 1.43 DCL 0.29 3.41 0.46 Debt Ratio 53.2% 45.7% 37.1% 86.2% Equity Ratio 46.8% 54.3% 62.9% 13.8% Debt Equity Ratio 1.14 0.84 0.59 6.26 Invested Capital 132,278 130,518 122,850 33,740 Working Capital 46,779 51,794 55,308 10,750 Working Capital / Sales 13.00% 12.98% 15.34% 5.95% Cost of Debt 4.30% 11.80% 16.88% 6.62% TIE ( Times Interest earned) 36 38 33 3 ROA 20.38% 16.94% 14.31% 2.80% ROE 43.54% 31.23% 22.75% 20.32% ROIC 25.81% 23.92% 19.90% 6.95% Collection Days 44 58 53 36 Inventories Days 51 49 47 47 Payment Days 48 65 65 73 Company Value year 2008 Assumption : cost of equity 7% WACC 4.7% Value Creation (of each dollar) 0.211 € 0.192 € 0.152 € 0.022 €
Company A Company B Company C 2009E 2010E 2008 2009E 2010E 2008 2009E 37% 37% 14% 38% 26% 14% 14% 2,426 1,203 2,083 2,005 320 27386.7 30874.86 196.36 1.82 33.83 1.38 1.20 1.33 1.93 1.15 1.10 2.19 0.999592 1.02 260.69 2.09 37.12 1.38 1.22 83.4% 83.9% 49.5% 54.3% 45.1% 47.6% 45.2% 16.6% 16.1% 50.5% 45.7% 54.9% 52.4% 54.8% 5.01 5.23 0.98 1.19 0.82 0.91 0.82 35,620 34,770 28,031 29,516 26,667 166,234 171,051 14,660 15,720 9,943 13,258 12,351 52,420 65,678 7.25% 7.82% 16.57% 19.05% 21.15% 19.21% 22.09% 6.50% 6.51% 8.00% 11.06% 13.68% 1.40% 6.37% 4 2 9 12 2 127 40 3.07% 0.95% 8.27% 6.47% 0.61% 22.55% 21.83% 18.48% 5.89% 16.39% 14.15% 1.12% 43.01% 39.82% 6.81% 3.46% 7.43% 6.79% 1.20% 16.47% 18.05% 34 45 69 84 73 50 82 38 43 74 92 86 52 57 59 80 71 130 105 54 84 0.021 € -0.013 € 0.027 € 0.021 € -0.035 € 0.118 € 0.133 €

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Company HQ 2010E 2008 2009E 2010E 12% 27% 27% 27% 23954.44 949479% 768376% 646730% 1.13 1.15 1.01 0.97 0.42 0.53 1.10 0.49 25.9% 47.6% 45.2% 25.9% 74.1% 52.4% 54.8% 74.1% 0.35 0.75 0.26 0.23 166,229 48,930 46,636 39,203 72,316 -4,178 -6,125 -4,106 30.19% -26.96% -47.77% -37.25% 16.40% 3.25% 3.25% 3.25% 57 24 121 114 19.65% 19.99% 39.06% 31.24% 26.53% 35.00% 49.41% 38.32% 14.41% 19.40% 16.48% 16.50% 61 ----- ----- ----- 47 ----- ----- ----- 63 ----- ----- ----- 0.097 € 0.147 € 0.118 € 0.118 €
GROUP CONSOLIDATION: P&L and BS 2008-2010 Exchange R FINANCIAL STATEMENTS (in '000 EURO) PROFIT & LOSS STATEMENT 2008 2009E 2010E 2011E Net Sales 359,919 398,906 360,524 Material Costs 242,385 279,905 246,178 CM 1 117,534 119,001 114,345 Royalties & Comission - ### - Distribution Costs 7,902 8,622 8,411 Other Income 3,791 7,836 1,307 Gross Profit 113,423 118,215 107,241 Personnel (Salary & Soco) 42,615 41,703 45,926 Operating Expense 6,100 6,560 6,203 Rental Expense 144 156 156 Administration 6,834 8,670 7,374 Selling & Travelling 9,823 10,674 8,829 Miscellaneous 176 195 73 EBITDA

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• Fall '17
• Balance Sheet, Generally Accepted Accounting Principles, INVESTed CAPITAL, Net Equity

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