Chapter_09_Excel_Spreadsheets_Problem_14

Chapter_09_Excel_Spreadsheets_Problem_14 - 0.4 0.3 0.6 0.5...

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Chapter 9 Problem 14 Harley-Davidson Inc. 2004 ($ millions) Net income $889.77 $66.33 Price/earnings (x) Number of common shares, millions 294.31 71.58 MV firm/EBIT(1-tax rate) (x) Earnings before interest and tax $1,506.16 60.80 MV equity/BV equity (x) Tax rate 35.0% $76.84 MV firm/BV firm (x) Book value of equity $3,218.47 26.03 Price/sales (x) Book value interest-bearing debt $1,295.44 27.12 MV firm/sales (x) Total Sales $5,320.45 $54.78 average Total Assets $5,483.29 Harley- Arctic Polaris Marine Winnebago Davidson Cat Brunswick Industries Products Industries Comparison of Timberland with Comparable Companies: Growth Rates, Financial Risks, Size, Returns 5-year growth rate in sales (%) 15.5 6.2 4.1 6.1 15.5 10.8 5-year growth rate in eps (%) 28.1 11.1 47.1 15.9 25.1 17.2 Interest coverage ratio (x) 60.9 * 8.9 85.1 * * Total liabilities to assets (%)
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Unformatted text preview: 0.4 0.3 0.6 0.5 0.2 0.5 Total assets ($ millions) 5,483 286 4,346 793 110 395 Indicators of Value Price/earnings (x) 21.9 16.9 17.8 27.8 28.6 18.6 MV firm/EBIT(1-tax rate) (x) 21.5 17.3 19.4 24.3 29.0 17.6 MV equity/BV equity (x) 5.6 2.8 2.8 8.0 7.7 6.5 MV firm/BV firm (x) 5.4 2.8 2.3 7.7 7.7 6.5 Price/sales (x) 1.4 0.8 0.9 1.6 2.7 1.2 MV firm/sales (x) 1.5 0.8 1.1 1.7 2.7 1.2 * These companies have little or no interest-bearing debt outstanding. Harley-Davidson Inc. produces motorcycles, motorcycle parts and related accessories and merchandise in the United States and internationally. It is headquartered in Milwaukee, Wisconsin. Use the following information on Harley-Davidson and five other similar companies to value Harley-Davidson as of December 31, 2004....
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