case3_03_2 - 7.16 0.1424 4,764,398 50,000 21,818,182...

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All Equity 50% Debt Probability 0.25 0.50 0.25 0.25 0.50 0.25 EBIT 5,000,000 17,000,000 29,000,000 5,000,000 17,000,000 29,000,000 Interest - - - 4,200,000 4,200,000 4,200,000 EBT 5,000,000 17,000,000 29,000,000 800,000 12,800,000 24,800,000 Taxes 2,000,000 6,800,000 11,600,000 320,000 5,120,000 9,920,000 Net Income 3,000,000 10,200,000 17,400,000 480,000 7,680,000 14,880,000 ROE 5% 17% 29% 1.60% 25.60% 49.60% TIE n.a. n.a. n.a. 1.19 4.05 6.90 17.00% 25.60% 8.50% 17.00% 0.50 0.66 Valuation Analysis D(000s) S V D/V P WACC # of shares 0 60,000,000 60,000,000 0.00% 6.00 0.1700 10,000,000 12,500 53,142,857 65,642,857 19.04% 6.56 0.1554 8,095,756 25,000 44,594,595 69,594,595 35.92% 6.96 0.1466 6,407,767 37,500 34,125,000 71,625,000 52.36%
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Unformatted text preview: 7.16 0.1424 4,764,398 50,000 21,818,182 71,818,182 70.00% 7.18 0.1420 3,037,975 62,500 7,222,222 69,722,222 90.00% 6.97 0.1460 1,035,857 scenario 5a debt repurchases share price (37.5) # repurchased shares # shares outsta EPS 1.02 1.15 1.29 1.43 1.58 1.88 nding equity (25) scenario 5a debt repurchases share price (37.5) # repurchased shares # shares outstanding equity (25) 12500000.000 7.160 1745810.056 6349946.201 44594594.595 scenario 5b debt repurchases share price (25) # repurchased shares # shares outstanding equity (25) 12500000.000 6.960 1795977.011 6299779.245 44594594.595 new share price 7.023 new share price 7.079...
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