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Chap013 - C hapter 13 E quity Valuation CHAPTER 13 EQUITY...

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Chapter 13 - Equity Valuation 13-1 CHAPTER 13 EQUITY VALUATION 1. . 2. . 3. . 4. MV / BV = 3.33 5. P/E = 50 6. Price = 66.66 7. PVGO = 180

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Chapter 13 - Equity Valuation 13-2 8. 300 EBIT 105 -Taxes 195 Net Income 20 + depreciation 60 - CapEx 30 - increase in WC 125 FCF 9. FCFE = 193.70 Value = \$2,152.22 10. P = \$19.09 11. 41 . 29 \$ 04 . 0 125 . 0 50 . 2 \$ 1 0 = = = g k D P 12. . 13. a. g k D P 1 0 =
Chapter 13 - Equity Valuation 13-3 g 16 . 0 2 \$ 50 \$ = % 12 . 0 \$ 2 \$ . 0 g = = = b. 18 . \$ 05 . 0 . 0 2 \$ g k D P 1 0 = = = . 14. a. g = 6.0% D 1 = \$1.40 33 . 23 \$ 06 . 0 . 0 40 . 1 \$ g k D P 1 0 = = = P/E = 11.67 b. PVGO = P 0 k E 0 = \$23.33 – 66 . 6 \$ . 0 00 . 2 \$ = c. g = 4.0% D 1 = \$1.60 . 20 \$ 04 . 0 . 0 60 . 1 \$ g k D P 1 0 = = = P/E = 10.0 PVGO = \$3.33 15. a. g = 8.0% D 1 = \$1.00 . 25 \$ 08 . 0 . 0 . 1 \$ g k D P 1 0 = = = b. P 3 = \$31.49

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Chapter 13 - Equity Valuation 13-4 16. a. k = 16% g = 6% D 1 = \$1.06 60 . 10 \$ 06 . 0 16 . 0 . 1 \$ g k D P 1 0 = = = b. Leading P 0 /E 1 = 3.33 Trailing P 0 /E 0 = 3.53 c. PVGO = P 0 k E 0 = \$10.60 – 15 . 8 \$ . 0 3 \$ = a. 85 . \$ 03 . 0 . 0 . 2 \$ g k D V 1 0 = = = . 17. FI Corporation a. 00 . 160 \$ 05 . 0 . 0 . 8 \$ g k D P 1 0 = = = b. ROE = 15% c. P 0 = \$120 .
Chapter 13 - Equity Valuation 13-5 18. Nogro Corporation a. D 1 = \$1 g = 0.10 Therefore: k = % 0 . 20 . 0 10 . 0 \$ 1 \$ g P D 0 1 = = + = + b. : 0 \$ 10 \$ 10 \$ k E P PVGO 0 0 = = = c. . 19. Xyrong Corporation a.

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Chap013 - C hapter 13 E quity Valuation CHAPTER 13 EQUITY...

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