EXHIBIT 6

EXHIBIT 6 - 508.5 533.9 Taxes (26.0) (27.5) Net Income 78.0...

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EXHIBIT 6.18 BrandC o: Income Stateme nt and Reorgan ized Balance Sheet $ million Income Statement Today Year 1 Reorganized balance sheet Today Year 1 Revenues 800.0 840.0 Operating working capital 1 70.1 73.6 Operating costs (640.0 ) (672.0 ) Property and equipment 438.4 460.3 Depreciation (40.0) (42.0) Invested capital 508.5 533.9 Operating profits 120.0 126.0 Debt 200.0 210.0 Interest (16.0) (16.0) Shareholders' equity 308.5 323.9 Earnings before taxes 104.0 110.0 Invested capital
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Unformatted text preview: 508.5 533.9 Taxes (26.0) (27.5) Net Income 78.0 82.5 4. Assuming the market value of debt equals todays book valye of debt, what is the intrinsic equity value of Brandco? What is the intrinsic value per share? Does it differ from the share price used to determine the cost of capital weightings? 5. what are the three components required to calculate economic profit? Determined Brandcos economic profit in year 1?...
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This note was uploaded on 02/21/2012 for the course ACT 492 taught by Professor Ngo during the Fall '11 term at Colorado.

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