Ch13.5e.Answers

Ch13.5e.Answers - Year Free Cash Flow (In Millions)...

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Unformatted text preview: Year Free Cash Flow (In Millions) Terminal Value 1 PV of FCF Terminal Value PV of Terminal Value Market Value 2 Price per Share 3 FCF in 2013 terminal value PV of Terminal Value Market Value Price per Share 2009 $12 $135.57 326.12 $148.75 $284.32 116.21 56.646 514.96727 $234.88 $370.46 173.63777 Click on the tabs below for the other solutions. 2010 $27 2011 $55 2012 $66 2013 $79 326.12 Click on each cell to see the formula. Your solutions will differ from these because you will pull your data on a different date. 77 records found. Industry Geography Asking Price Revenue Cash Flow Price to S ales Price to Cash Flow Utah Restaurant Utah > Wasatch Front $2,900,000 $ 4,270,000 $ 547,087 0 .679157 5.300802 Utah > UtahIdaho $2,999,000 $ 2,600,113 $ 376,048 1 .153411 7.975046 Utah > Utah Food and Beverage > Restaurants 1 .025888 4.615034 Wholesale, Industrial,Retail Supply Wholesale and Distribution > Wholesale and Distributors Set Manufacturing and Construction Manufacturing > Other Manufacturing $1,600,000 $ 1,559,625 $ 346,693 Utah > Utah County $1,000,000 $ 1,152,120 $ 318,164 0 .867965 3.143033 Utah > Wasatch Front $595,000 $ 636,340 $ 266,391 0 .935035 2.233559 Utah > Wasatch Front $450,000 $ 785,096 $ 266,349 0 .573178 1.689513 Utah > Northern Utah 1 .446091 7.985676 Commercial Printer - 4 Color Business Services > Commercial Printing Cleaning - Restoration Business Building and Const. Services > Other Services Remote Camp Operation Building and Const. Services > Other Services Northern Utah Tire and Auto Franchise Auto Related > Other Auto Related $1,900,000 $ 1,313,887 $ 237,926 Utah > Utah County $750,000 $ 470,672 $ 211,160 1 .593466 3.551809 Utah > National $600,000 $ 438,548 $ 197,695 1 .368151 3.034978 Belize $950,000 $ 246,000 $ 150,000 3.861789 6.333333 Retail & One Hour Photo Finishing Professional Services > Other Professional Services Training and Supply Company Educational > Other Educational Central American -Belize- Eco-Tourism Resort Entertainment and Leisure > Hotels and Motels Business to Business Manufacturing Company Utah $300,000 $ 476,489 $ 146,032 0 .629605 2.054344 Utah > Saint George $250,000 $ 472,942 $ 142,419 0 .528606 1.755384 Utah > Wasatch Front Manufacturing > Other Manufacturing Concrete and Excavating Contractor Building and Const. Services > Construction Sub-Contractors Utah Pest Control Business Chemicals > Other Chemicals 1 .943753 3.719553 $525,000 $ 270,096 $ 141,146 Utah > Salt Lake County $139,000 $ 474,000 $ 128,000 0 .293249 1.085938 Utah > Northern Utah $150,000 $ 363,640 $ 119,838 0 .412496 Utah > Utah $195,000 $ 417,406 $ 111,596 0 .467171 1.747374 Utah > Salt Lake County $250,000 $ 676,786 $ 111,094 0 .369393 2.250347 $ 107,617 0 .461712 3.112891 Plumbing Business Building and Const. Services > General Building Contractors Norther Utah Cellular Business Comm. and Media > Other Communication and Media 1.25169 Wholesale Scrapbooking Business Manufacturing > Other Manufacturing Basement Refinishing Business Building and Const. Services > Other Services Steakhouse and Deli Utah > Utah County $335,000 $ 725,561 Utah > Wasatch Front $1,300,000 $ 214,102 $ 106,537 6.071872 12.20233 Utah > Utah County $285,000 $ 333,173 $ 101,402 0 .855411 2.810595 Utah > Utah Food and Beverage > Restaurants $149,000 $ 200,000 $ 97,000 Utah > Utah county Bed and Breakfast Entertainment and Leisure > Hotels and Motels Painting Contractor Building and Const. Services > Construction Sub-Contractors Scrapbook Manufacturer Manufacturing > Other Manufacturing 0 .745 1.536082 Assisted Living Center $610,000 $ 140,412 $ 91,499 4 .344358 6.66674 Utah Health and Medical > Long-T erm Care Facilities $300,000 $ 356,379 $ 89,982 0 .8418 3.334 Utah > Utah County $525,000 $ 228,000 $ 89,000 2.302632 5.898876 Utah > Utah County $275,000 $ 2,484,436 $ 88,693 0 .110689 3.100583 Gourmet Italian Restaurant Food and Beverage > Restaurants Moving and Rental Business Moving, Storage and Delivery > Moving Companies Auto Repair, C-Store and Gas Station Auto Related > Auto Body and Repair Specialty Lighting Manufacturer Utah > Utah $175,550 $ 255,024 $ 87,833 0 .688367 1.998679 Utah > Wasatch Front $295,000 $ 127,539 $ 86,882 2.313018 Utah > Utah $265,000 $ 400,026 $ 83,102 0 .662457 3.188852 Utah > Wasatch Front $245,000 $ 539,226 $ 83,000 0 .454355 2.951807 Utah > Utah $227,270 $ 434,069 $ 82,579 0 .52358 2.752152 Utah > Davis/Weber County $155,000 $ 127,573 $ 81,207 1 .214991 1.908702 Utah Manufacturing > Lighting Products Manufacturing $120,000 $ 197,320 $ 75,209 0 .608149 1.595554 Utah > Utah $195,000 $ 123,057 $ 73,329 1 .584632 2.659248 Utah > Davis County $129,000 $ 149,728 $ 66,782 0 .861562 1.931658 Utah > Park City $250,000 $ 278,469 $ 65,426 Utah > Wasatch Front $120,000 $ 129,431 $ 65,341 0 .927135 1.836519 Utah > Utah County $120,000 $ 169,978 $ 54,000 0 .705974 2.222222 Country Western Dance Business Entertainment and Leisure > Other Entertainment and Leisure 3.39541 Online Laptop Sales Internet Related > Other Internet Related Catering Food and Beverage > Catering Services Mexican/American Fast Food Franchise Food and Beverage > Restaurants Lawn Care & Snow Removal Home and Garden > Other Home and Garden Utah County Childcare Educational > Day Care Centers Internet Art Business Internet Related > Other Internet Related Davis County Tanning Personal > Other Personal Prod. and Services Park City Wellness Hair and Beauty > Other Hair and Beauty 0 .897766 3.821111 Retail-Wholesale Embroidery Business Clothing and Fashion > Other Clothing and Fashion Utah Snow Removal, Landscape, Grounds Care Home and Garden > Other Home and Garden Utah Pest Control Business $70,000 $ 93,847 Utah $135,000 $ 354,626 $ 50,183 0 .380683 2.690154 Utah $250,000 $ 862,958 $ 49,605 0 .289701 5.039815 Utah > Wasatch Front Home and Garden > Other Home and Garden Utah > Wasatch Front $120,000 $ 312,119 $ 49,495 0 .384469 2.424487 $82,000 $ 50,310 0 .745895 1.391373 Wasatch Front Quizno's Food and Beverage > Restaurants Timber Mfg. and Fabrication Manufacturing > Wood Products Manufacturing Wasatch Front Quizno's Food and Beverage > Restaurants Smoothies & Sandwiches Utah > Wasatch Front Food and Beverage > Restaurants 0 .368864 1.86131 $ 222,304 $ 44,055 Utah > Greater Salt Lake $83,000 $ 169,363 $ 42,811 0 .490072 1.938754 Utah > Salt Lake City $100,000 $ 249,662 $ 42,224 0 .400542 2.368321 Utah > Salt Lake County Greater Salt Lake GNC Health and Nutrition Health and Medical > Other Health and Medical Boutique Retail Hair and Beauty > Other Hair and Beauty Retail Computer Sales and Service $75,000 $ 366,278 $ 42,116 0 .204763 1.780796 Utah > Salt Lake County $70,000 $ 226,955 $ 41,180 0 .308431 1.699854 Utah > Wasatch Front $99,000 $ 201,035 $ 40,436 0 .492452 2.448313 Utah > Wasatch Front $60,000 $ 70,000 $ 40,404 0 .857143 1.485001 Utah > Utah County $65,000 $ 119,554 $ 40,046 Utah > Utah County $87,000 $ 110,010 $ 39,453 0 .790837 2.205156 Utah > Northern Utah $99,000 $ 115,060 $ 38,149 0 .860421 2.595088 Utah > Utah County $100,000 $ 310,000 $ 33,000 0 .322581 3.030303 Utah > Salt Lake County $50,000 $ 117,026 $ 31,590 Utah > Utah County $175,000 $ 179,010 $ 31,540 0 .977599 Utah > Wasatch Front $69,000 $ 58,607 $ 31,120 1 .177334 2.217224 Utah > Utah County $200,000 $ 214,960 $ 31,060 0 .930406 6.43915 Utah > Wasatch Front Retail Stores > Computer Retailers $64,500 $ 114,441 $ 29,303 0 .563609 2.20114 Utah > Utah County $59,000 $ 112,799 $ 29,024 0 .523054 2.0328 Utah > Salt Lake County $75,000 $ 212,757 $ 27,295 0 .352515 2.747756 Utah > Wasatch Front $ 70,000 $ 167,512 $ 24,702 0 .417881 2.833779 Full Service Salon Hair and Beauty > Beauty Salons and Barber Shops Medical Distribution & Sales Health and Medical > Other Health and Medical Landscape Curbing Business Building and Const. Services > Other Services Utah County Residential Cleaner Business Services > Commercial Cleaning and Janitorial 0 .543687 1.623133 Small Engine Sales, Service and Repairs Home and Garden > Other Home and Garden Logan Tanning and Day Spa Hair and Beauty > Other Hair and Beauty Utah County Beauty Salon Hair and Beauty > Beauty Salons and Barber Shops South Salt Lake City Hair Salon Hair and Beauty > Beauty Salons and Barber Shops 0 .427255 1.582779 Franchise Shipping and Copy Store Business Services > Other Business Services 5.54851 Specialty Catering Food and Beverage > Catering Services Scrapbooking and Copy Store Retail Stores > Other Retail Stores Retail Water Purification Retail Stores > Other Retail Stores Utah County Hair and Beauty Salon Hair and Beauty > Beauty Salons and Barber Shops Franchise Hair Salon Hair and Beauty > Beauty Salons and Barber Shops Upscale Childrens Retail Clothing and Fashion > Clothing and Footwear Retailing Specialty Retail Mall Store Utah > Wasatch Front Retail Stores > Other Retail Stores 0 .53719 2.826087 $65,000 $ 121,000 $ 23,000 Utah > Utah County $50,000 $ 113,808 $ 21,133 0 .439336 2.365968 Utah > Salt Lake County $45,000 $ 32,395 $ 18,350 1 .389103 2.452316 Utah > Wasatch Front $ 95,000 $ 288,634 $ 15,796 0 .329137 6.014181 Utah > Salt Lake County $85,000 $ 27,052 $ 14,795 3.142097 5.745184 Utah > Utah $75,000 $ 105,772 $ 4,599 0 .709072 16.30789 Utah County Salon and Day Spa Hair and Beauty > Other Hair and Beauty Salt Lake Cleaning Business Services > Commercial Cleaning and Janitorial Designer Shoe Boutique Clothing and Fashion > Clothing and Footwear Retailing Machine Shop Manufacturing > Auto Parts Manufacturing Tax Return Preperation Professional Services > Legal and Accounting Davis County Blimpie Utah > Davis County Food and Beverage > Restaurants $59,000 $ 180,000 $ 2,500 0 .327778 Utah > Utah County $150,000 $ 61,574 $ 1,266 2.436093 Utah $228,000 $ 120,842 1 .886761 Utah > Salt Lake Valley $63,000 $ 305,000 0 .213115 23.6 Bohemian Crystal Importing Company Internet Related > Other Internet Related Ready Made Meals Food and Beverage > Food Production and Packaging Franchise Fitness Center - below equipment value! Health and Medical > Health Clubs and Spas Skin Sanitizer Health and Medical > Other Health and Medical Utah > Utah Franchise Lube N Tune - Tucson Arizona Arizona > Tucson Auto Related > Other Auto Related $65,000 South Salt Lake Dollar Store Utah > South Salt Lake $40,000 $ 30,000 1 .333333 Utah > Wasatch Front Retail Stores > Other Retail Stores $60,000 $ 159,100 0 .377121 Utah > Salt Lake County $35,000 Foreign Engine Exchange Auto Related > Auto Parts Recycling Online Internet Art Internet Related > Other Internet Related Pest Control Business Utah > Wasatch Front $99,000 Utah > Utah Home and Garden > Other Home and Garden $179,000 BMX Bike & Skate Shop Retail Stores > Independent Stores 0 .759675 $ 235,627 Average Median 0.986491 3.703702 0.688367 2.659248 Price to S ales Price to Cash Flow Price to S ales Price to Cash Flow Click on a business below to view its details. Alpine Business Brokers Listings 72 records found. Industry Geography Asking Price Revenue Cash Flow Dental Lab Health and Medical > Other Health and Medical Utah > Western United States $2,500,000 $ 2,754,000 $ 625,000 0 .907771 4 Utah > Central Utah $1,200,000 $ 2,437,749 $ 131,420 0 .492257 9.13103 Utah > Southern Utah $8,500,000 $ 2,362,080 $ 1,117,142 Utah > Wasatch Front $1,359,000 Powersports Dealership Entertainment and Leisure > Other Entertainment and Leisure South Western Assisted Living Facilities Health and Medical > Long-T erm Care Facilities 3.598523 7.608701 Metal Fabrication & Supply Manufacturing > Metals Components Manufacturing $ 1,536,422 $ 388,405 0 .884523 3.498925 Utah $850,000 $ 1,325,369 $ 341,303 0 .641331 2.490456 Utah > Wasatch Front $495,000 $ 1,046,426 $ 177,857 0 .473039 2.783135 Utah $225,000 $ 1,025,088 Utah $220,000 $ 1,001,342 $ 22,261 Utah $375,000 $ 982,466 $ 119,173 0 .381693 3.146686 0 .406088 3.696875 Commercial-Industrial Electrical Contractor Building and Const. Services > Construction Sub-Contractors Clothing Manufacturing & Distribution Business Clothing and Fashion > Other Clothing and Fashion Online Scrapbook Retailer Internet Related > E-Commerce and E-T ailers $ 21,559 0 .219493 10.43648 Mexican Market & Restaurant Supplier Food and Beverage > Grocery and Supermarkets 0 .219705 9.882755 Burger Franchise Food and Beverage > Restaurants Donut Bakery & Restaurant Food and Beverage > Restaurants Utah $395,000 $ 972,695 $ 106,847 Utah $500,000 $ 904,191 $ 207,542 Utah $600,000 $ 859,649 $ 194,456 Utah $1,450,000 $ 809,646 $ 183,748 1 .790906 7.891242 Utah > Park City $325,000 $ 788,387 $ 165,635 0 .412234 1.962146 0 .549466 3.313238 Utah County Retail Business Home and Office Furniture > Home Furniture Retailing 0 .552981 2.409151 Cosmetology School Hair and Beauty > Beauty Salons and Barber Shops 0 .697959 3.085531 Salt Lake County Auto Repair Auto Related > Auto Body and Repair Park City Business to Business Wholesale and Distribution > Wholesale and Distributors Park City Food Food and Beverage > Catering Services Utah $399,000 $ 726,159 $ 120,426 Utah $299,000 $ 716,735 $ 142,388 Utah $154,900 $ 599,561 $ 53,882 Utah $195,000 $ 577,820 $ 230,546 0 .337475 0.845818 Utah $300,000 $ 568,255 $ 115,988 0 .527932 2.586474 Security Sales & Installation T echnology > Other T echnology 0 .41717 2.099896 Window Covering Retail Retail Stores > Independent Stores 0 .258356 2.8748 Epoxy Coating Business Business Services > Other Business Services Massage Therapy Personal > Other Personal Prod. and Services Dumpster Rental Business Business Services > Equipment Rental and Leasing $300,000 $ 545,611 $ 180,346 0 .549842 1.663469 Utah $125,000 $ 538,026 $ 23,702 0 .232331 5.273817 Utah $1,600,000 $ 535,000 $ 461,000 2.990654 3.470716 Utah $900,000 $ 512,361 $ 272,407 1 .756574 Utah > Southern Utah $195,000 $ 510,000 $ 97,000 0 .382353 2.010309 Utah > Salt Lake City $375,000 $ 489,850 $ 170,804 0 .76554 2.195499 $ 71,911 0 .624299 3.963232 Utah Retail Floral Business Retail Stores > Florist Energy Consulting Firm Business Services > Other Business Services Vinyl Manufacturing & Distribution Manufacturing > Plastics Components Manufacturing 3.30388 Southern Utah Tire & Service Center Auto Related > Auto Body and Repair Salt Lake City Service Business Business Services > Other Business Services Absentee Locksmith Business Business Services > Locksmiths Utah $285,000 $ 456,512 Utah > Southern Utah $225,000 $ 422,533 $ 75,917 Utah $750,000 $ 415,948 $ 183,612 Utah $110,000 $ 407,692 $ 48,148 0 .269812 2.284622 Utah $49,000 $ 376,534 $ 23,980 0 .130134 2.043369 Utah $199,000 $ 356,657 $ 80,281 0 .557959 2.478793 Southern Utah Lighting Store Retail Stores > Independent Stores 0 .532503 2.963763 Carbon County Auto Repair Auto Related > Auto Body and Repair 1 .80311 4.0847 Utah County Automotive Repair Auto Related > Auto Body and Repair Salt Lake County Salon & Day Spa Hair and Beauty > Beauty Salons and Barber Shops Ice Cream Franchise Food and Beverage > Restaurants Online Event Management Internet Related > E-Commerce and E-T ailers Utah 0 .153086 1.400874 $50,000 $ 326,613 $ 35,692 $165,000 $ 323,308 $ 164,724 0 .510349 1.001676 Utah $145,000 $ 323,126 $ 54,566 0 .448741 2.657332 Utah $1,200,000 $ 312,539 $ 213,270 3.839521 Utah $40,000 $ 305,176 $ 39,471 0 .131072 1.013402 Utah $140,000 $ 291,369 $ 79,189 0 .48049 1.767922 Utah $285,000 Utah Custom Clothing Manufacturing & Retail Clothing and Fashion > Clothing Designer Utah Corporate Apparel & Promotional Products Business Services > Other Business Services Motel near Moab, Utah Entertainment and Leisure > Hotels and Motels 5.62667 Davis County Quiznos Food and Beverage > Restaurants Utah County Restaurant Food and Beverage > Restaurants Furniture Manufacturer Manufacturing > Furniture Manufacturing $ 276,021 $ 89,579 1 .03253 3.181549 Franchised Restaurant Food and Beverage > Restaurants $116,000 $ 265,000 $ 38,000 0 .437736 3.052632 Utah > Wasatch Front $98,000 $ 254,650 $ 40,375 0 .384842 2.427245 Utah $225,000 $ 242,101 $ 68,660 0 .929364 3.277017 Utah > Davis and Weber Counties Wasatch Front Blimpie Food and Beverage > Restaurants Retail Furniture & Home Decor Home and Office Furniture > Office Furniture Retailing Commercial Landscape Maintenance Home and Garden > Other Home and Garden $179,000 $ 235,210 $ 70,694 0 .761022 2.532039 Utah $98,000 $ 212,209 $ 49,497 0 .461809 1.979918 Utah > Ogden $395,000 $ 207,131 $ 30,776 1 .907006 12.83468 Utah $150,000 $ 192,134 Utah Electronic Audio-Video Systems Retail Stores > Electronic Equipment Retailing Ogden Neighborhood Cafe & Market Food and Beverage > Restaurants Upscale Clothing Store Clothing and Fashion > Clothing and Footwear Retailing Utah Valley UPS Store Business Services > Other Business Services $ 27,391 1 .027673 7.119127 $195,000 $ 189,749 Utah $21,000 $ 184,963 $ 25,577 0 .113536 Utah $137,000 $ 182,561 $ 80,864 0 .750434 1.694203 Utah > Park City $60,000 $ 175,000 $ 17,000 0 .342857 3.529412 Utah $450,000 $ 153,000 $ 149,000 2.941176 3.020134 Utah $69,950 $ 150,229 $ 42,053 Utah $69,950 $ 131,435 $ 40,347 0 .532202 Utah $54,900 $ 124,721 $ 14,881 0 .440182 3.689268 Utah $137,000 $ 119,776 $ 43,426 1 .143802 3.154792 Utah $150,000 $ 119,030 Utah $69,500 $ 118,261 $ 33,228 0 .587683 2.091609 Utah $60,000 $ 117,759 $ 26,674 0 .509515 2.249381 Utah $65,000 $ 111,628 $ 29,708 0 .582291 2.187963 Utah $ 54,391 1 .317104 2.665882 Davis County Salon Hair and Beauty > Beauty Salons and Barber Shops 0.82105 Established Plumbing Business Building and Const. Services > Other Services Park City Business Retail Stores > Other Retail Stores Online Lead Generation Business Internet Related > Other Internet Related Salt Lake Nutrition Center Retail Stores > Other Retail Stores 0 .465622 1.663377 Utah Valley Nutrition Center Retail Stores > Franchise 1.73371 Utah Valley Beauty Salon Hair and Beauty > Beauty Salons and Barber Shops Weight Loss Kiosk Food and Beverage > Other Food and Beverage Online Student Publishing Comm. and Media > Internet Publishers Salt Lake County Tanning Salon Personal > Other Personal Prod. and Services Magazine Comm. and Media > Periodicals and Mag. Publishers Utah County Floral & Boutique Retail Stores > Florist Absentee Payday Loan Store Financial > Other Financial $145,000 $ 110,090 Utah $50,000 $ 106,948 $ 13,227 Utah $145,000 $ 94,216 $ 84,086 1 .539017 1.724425 Utah $100,000 $ 64,905 $ 64,905 1 .540713 1.540713 Utah $76,000 $ 61,977 $ 35,915 1 .226261 2.116107 Utah $98,000 $ 54,077 $ 44,449 1 .812231 2.204774 Utah $225,000 $ 52,000 $ 20,000 Auto Glass Repair & Replacement Auto Related > Other Auto Related 0 .467517 3.780147 Established Locksmith Business Business Services > Locksmiths Online Lead Generator Internet Related > Other Internet Related Online Merchandise Sales Internet Related > E-Commerce and E-T ailers Utah County Pest Control Business Services > Other Business Services Utah Valley Laundromat Personal > Coin Laundry 4 .326923 11.25 Online Dating Site Internet Related > Other Internet Related Utah $99,000 $ 41,580 $ 36,660 2.380952 2.700491 Utah > Weber & Davis County $60,000 $ 33,260 $ 24,978 1 .803969 2.402114 Utah $100,000 $ 23,462 Utah $50,000 $ 23,083 Utah $90,000 $ 19,963 Embroidery Shop Business Services > Other Business Services Embroidery Business Business Services > Other Business Services $ 5,712 4 .262211 17.507 Freight Consolidation Franchise T ransportation > Shipping and T ransportation $ 18,879 2.166096 2.648445 Bulk Vending Business Food and Beverage > Vending Machines $ 5,129 Average Median Max Min Range 4 .50834 17.54728 1.070479 3.869759 0.55547 2.683187 4.50834 17.54728 0.113536 0.82105 6. Higher multiples are usually attributed to greater growth potential. 7. Value = $100,000 * 4 = $400,000 8. Value = $1,000,000 * 5 = $5,000,000 10. Liquidity and Control Premiums Your solutions may differ, this data is retrieved 11/11/08 Click the "Key Statistics" tab on the left side of the webpage. P/E (trailing) P/S P/B Market Cap Coke (KO) 17.27 3.30 4.47 102.63 B Pepsi (PEP) 15.69 1.98 5.27 85.55B We'll discuss the differences in class. ...
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