FCF Chapter Examples

FCF Chapter Examples - EX 4-1 Given FCFF FCFE re bt%Equity...

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EX 4-1 Given: FCFF CHF 700,000,000 FCFE CHF 620,000,000 11.80% %Debt 20.00% %Equity 80.00% 5.70% T 33.33% CHF 2,200,000,000 # Shares 200,000,000 g FCFF 5.00% a) WACC = (1-t)(%Debt)(Cost debt) + (%Equity)(Cost of Equity) 10.20% b) Val Eq using FCFF = FCFF - MVDebt CHF 11,934,512,094 c) CHF 59.67 r e B-Tax Cost debt CHF MV Debt V 0 per share = FCFE / # shares
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Ex 4-2 Income Statement 2007 2008 2009 EBITDA $200.00 $220.00 Dep $45.00 $49.50 EBIT $155.00 $170.50 Interest 7% $15.68 $17.25 EBT $139.32 $153.25 Taxes 30% $41.80 $45.97 NI $97.52 $107.28 Balance Sheet 2007 2008 2009 2007 2008 2009 Cash $0.00 $108.92 $228.74 A/P $0.00 $50.00 $55.00 A/R $0.00 $100.00 $110.00 Current LTD $0.00 $0.00 $0.00 Inventory $60.00 $66.00 $72.60 CL $0.00 $50.00 $55.00 CA $60.00 $274.92 $411.34 LTD $224.00 $246.40 $271.04 FA $500.00 $500.00 $550.00 Common $336.00 $336.00 $336.00 less Acc Dep $0.00 $45.00 $94.50 Retained $0.00 $97.52 $204.80 Total Assets $560.00 $729.92 $866.84 $560.00 $729.92 $866.84 Working Cap 2007 2008 2009 Cash A/R $0.00 $100.00 $110.00 Inventory $60.00 $66.00 $72.60 Total C/A $60.00 $166.00 $182.60 A/P $0.00 $50.00 $55.00 Current LTD Total CL $0.00 $50.00 $55.00 Working Cap = $60.00 $116.00 $127.60 Change in WC $56.00 $11.60 FCFF from NI NI $97.52 $107.28 +NCC $45.00 $49.50 +Int*(1-T) $10.98 $12.08 -FCINV (Change) $0.00 $50.00 -WCINV (Change) $56.00 $11.60 FCFF $97.50 $107.26 EX 4-3 CFO 2007 2008 2009 NI $97.52 $107.28 Plus Dep $45.00 $49.50 Inc in A/R $100.00 $10.00 Inc in Inv $6.00 $6.60 Inc in A/P $50.00 $5.00 CFO $86.52 $145.18 CFInvesting Purchase PPE $0.00 $50.00 CF Financing Borrowing $22.40 $24.64 Total CF $108.92 $119.82 Beginning Cash $0.00 $108.92 Ending Cash $108.92 $228.74 Notes Interest Paid in cash $15.68 $17.25
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This note was uploaded on 11/14/2011 for the course FIN 469 taught by Professor English during the Spring '08 term at American.

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FCF Chapter Examples - EX 4-1 Given FCFF FCFE re bt%Equity...

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