Chap013

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Unformatted text preview: C hapter 13 - E quity Valuation CHAPTER 13 EQUITY VALUATION 1. . 2. . 3. . 4. MV / BV = 3.33 5. P/E = 50 6. Price = 66.66 7. PVGO = 180 13-1 C hapter 13 - E quity Valuation 8. 300 105 195 20 60 30 125 EBIT -Taxes Net Income + depreciation - CapEx - increase in WC FCF 9. FCFE = 193.70 Value = $2,152.22 10. P = $19.09 11. P0 = D1 $2.50 = = $29.41 k − g 0.125 − 0.04 12. . 13. a. P0 = D1 k−g 13-2 C hapter 13 - E quity Valuation $50 = b. P0 = $2 $2 ⇒ g = 0.16 − = 0.12 = 12% $50 0.16 − g D1 $2 = = $18.18 k − g 0.16 − 0.05 . 14. a. g = 6.0% D1 = $1.40 P0 = D1 $1.40 = = $23.33 k − g 0.12 − 0.06 P/E = 11.67 b. PVGO = P0 – E0 $2.00 = $23.33 – = $6.66 k 0.12 c. g = 4.0% D1 = $1.60 P0 = D1 $1.60 = = $20.00 k − g 0.12 − 0.04 P/E = 10.0 PVGO = $3.33 15. a. g =...
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This note was uploaded on 12/13/2011 for the course MANAGEMENT 103 taught by Professor Mr.singh during the Spring '11 term at Aristotle University of Thessaloniki.

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