MK- Mini Case 2.xlsx - Given Information Neuquen Inc \ufffd Market Value Debt \ufffd_\ufffd YTM Market Cap \ufffd \ufffd_\ufffd Required Return on Equity Tax Rate Common

MK- Mini Case 2.xlsx - Given Information Neuquen Inc �...

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Given Information: Neuquen, Inc Market Value Debt $2,000,000.00 YTM 6.20% Market Cap $5,000,000.00 Required Return on Equity Tax Rate 40.00% Common Stock O/S 100,000 MV 50.00 BV 20.00 Compute % Debt 28.57% Compute % Equity 71.43% Compute 1.0629% ?_𝑊𝐴𝐶𝐶 ?_? ?_? ? ?
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Compute Perpetual Growth in Cash Flows for Year 5 (Terminal Value) Step 1: Compute $986,850.00 =I39*(1+E7) Step 2: Compute -0.94% =B17-E7 Step 3: Compute -$105,304,115.85 =B70/B71 Compute - Equation = -$97,563,617.65 =(E39/(1+B17))+(F39/(1+B17)^2)+( - Excel Function NPV = ($97,563,617.65) =NPV(B17,E39,F39,G39,H39,I39+B Compute Equity MV ($99,038,617.65) =B77-H6 Compute Share Price #DIV/0! 𝑇?_5=(𝐶𝐹_6)/((?_ 𝐶𝐹_6 (?_𝑊𝐴𝐶𝐶−𝑔) 𝑇?_5 𝑃?_0=(𝐶𝐹_1)/(1+?_𝑊𝐴𝐶𝐶 )+𝐶𝐹2/(1+?_𝑊𝐴𝐶𝐶 )^2 + 𝑃?_0 𝑃?_0 ? ?=𝑃?_0−? 𝐴:𝑀𝐴𝑋 ?𝐻𝐴?𝐸 𝑃?𝐼𝐶𝐸 𝑃?_0
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Given Information: Artforever.com EBIT Growth Rate Years 2 - 5 - Market Value Debt Growth Rate Year 6+ 2.00% Common stock o/s Current Cost of Borrowing 6.20% Tax Rate Debt to Value Ratio 15.00% EV/EBITDA Multiple Rate of Return on MV 5.30% Coupon Rate Expected Rate of Return on MV 8.00% Market Value Capital Structure Weight % Unlever Beta Debt 15.00% Lever Beta Equity 85.00% 100.00% Cost of Equity Rs= 11.15% Discount Rate / WACC 0.1848 Compute 2018 2019 2020 Sales 1,000,000.00 1,250,000.00 1,875,000.00 COGS 420,000.00 525,000.00 787,500.00 Expenses 150,000.00 187,500.00 281,250.00 Depreciation 15,000.00 30,000.00 50,000.00 EBIT $430,000.00 $537,500.00 $806,250.00 Taxes $172,000.00
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