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Year 4 Year 5 Year 6 Year 7 1 2 Investment Working Capital Operating Cash Flow Total Cash Flow 4 5 NPV IRR + Read 1st! , WACC Machine NPV , SkyBlue financials SkyBlue valuation, Apache BS - Consolidated > 7:36 C Apache Airlines, A Privately Held x This case has the following road x M Inbox (936)[email protected] X t 5.2Problem Set - Google Sheets x + - OX F + C docs.google.com/spreadsheets/d/15w4qdaCOP5rAxemVMZD Y9RHvu2vcrbMS92hJn4Qy-w/edit#gid=1301615892 5.2Problem Set File Edit View Insert Format Data Tools Add-ons Help e a Share Last edit was 2 minutes ago na ? 100%, $ % ..00 123 Times New... - 12B I A . ES- I D + Y E . A J LM Component 1 Net Income (M$) 2 Earnings per share 3 # of shares (M) 4 Price per share 5 Market Value - Equity (M) 6 Market Value - Debt (M) 7 Market Value - Total (M) 8 -% Debt 9 -% Equity 10 Beta (levered) 11 Beta (unlevered) 12 Average Beta (unlevered) Caledonian 33.40 1.04 32.12 14.00 450 341 791 43% 57% 1.07 0.61 Laker Source 24.10 Given 1.53 Given 15.75 Net Income / Earnings per share 12.63 Given 199 # of shares x Price per share 75 Given 274 Market Value - Debt + Equity 27% Market Value - Debt/Market Value - Total 73% 1-% Debt 0.93 Given 0.68 Beta (levered) x % Equity 0.64 Average Values for combined Apache/SkyBlue airline: % Debt 45.0% % Equity 55.0% Beta (relevered) 1.16 Risk free rate 4.0% Market risk premium 5.5% Expected equity return 10.4% Given 1-% Debt Average
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Beta (unlevered) / % Equity Assumption Historical figure CAPM calculation + Read 1st! , WACC Machine NPV , SkyBlue financials SkyBlue valuation, Apache BS - Consolidated > Explore 0 7 :36 C Apache Airlines, A Privately Held x This case has the following road x M Inbox (936)[email protected] X t 5.2Problem Set - Google Sheets x + - OX F + C docs.google.com/spreadsheets/d/15w4qdaCOP5rAxemVMZD Y ORHvu2vcrbMS92hJn4Qy-w/edit#gid=780227429 5.2Problem Set File Edit View Insert Format Data e a Share Tools Add-ons Help Last edit was 2 minutes ago Y , N O P Q R S na 100% - $ % . .00 1236 Times New... - 12 . B I A . ES - I D + fx Tab J K L M 1 This case has the following road map: 2 Tab WACC Shows the financials for both airlines and calculated the weighed average cost of capital (WACC) for the combined airline 4 Machine NPV Please calculate the NPV of the new gates SkyBlue financials Calculate SkyBlue's income statement (IS) and balance sheet (BS) in order to run free cash flows in the valuation tab 6 SkyBlue valuation Calculate the present value of SkyBlue using free cash flows 7 Apache BS (balance sheet) Shows Apache's balance sheet for 2018 and forecast 2019-2021 8 Consolidated BS Consolidates Apache's and SkyBlue's balance sheets and recalculates the bank ratios 10 Please note: All figures are in thousand $ unless noted otherwise + Read 1st! , WACC Machine NPV , SkyBlue financials SkyBlue valuation, Apache BS - Consolidated 7:36
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