Add back depreciation total cashflow sale of mc nett

  • No School
  • AA 1
  • ahkuoid80
  • 4

This preview shows page 2 - 4 out of 4 pages.

Add back depreciation Total cashflow Sale of M/c nett of tax Total Incremental Cash Discounted Cashflow Total Discounted Cashflow NPV Adverse Conditions Year 1 year 2 Year 3 Year 4 Year 5 Year 6 Sales Sell Price Revenue Operating [email protected]% Gross Profit Depreciation Pretax Income Taxes After tax Cash flow Add back depreciation Total Cashflow Sale of M/c nett of tax Total Incremental Cash Discounted Cashflow Total Discounted Cashflow NPV Normal Conditions Year 1 year 2 Year 3 Year 4 Year 5 Year 6 Sales Sell Price Revenue Operating [email protected]% Gross Profit Depreciation Pretax Income Taxes After tax Cash flow Add back depreciation Total cashflow Sale of M/c nett of tax Total Incremental Cash
Image of page 2

Subscribe to view the full document.

Discounted Cashflow Total Discounted Cashflow NPV Optimistic Conditions Year 1 year 2 Year 3 Year 4 Year 5 Year 6 Sales Sell Price Revenue Operating [email protected]% Gross Profit Depreciation Pretax Income Taxes After tax Cash flow Add back depreciation Total Cashflow Sale of M/c nett of tax Total Incremental Cash Discounted Cashflow Total Discounted Cashflow NPV Expected NPV 0
Image of page 3
Question 16 UPS Valuation using Dividends, BV Risk premium 5.50% Risk free rate 5% BV @ 31 Dec 2007 9.62 EPS 22% BV beginning Dividends 30% of EPS beta 0.6 Current Markt Price 59.38 P/B 6.2 Market Price 3x BV in 8 years return on stock 0.083 9.62 Year Proj. EPS Proj. DPS BV/share F/c ROE (Beg. BV) Cost Equity Eq. Chrge Res. IncomPvof BV/RI 2008 2.12 0.63 11.10 0.22 0.083 0.80 1.32 1.22 2009 2.44 0.73 12.81 0.22 0.083 0.92 1.52 1.30 2010 2.82 0.85 14.78 0.22 0.083 1.06 1.76 1.38 2011 3.25 0.98 17.06 0.22 0.083 1.23 2.03 1.47 2012 3.75 1.13 19.69 0.22 0.083 1.42 2.34 1.57 2013 4.33 1.30 22.72 0.22 0.083 1.63 2.70 1.67 2014 5.00 1.50 26.22 0.22 0.083 1.89 3.11 1.78 2015 5.77 1.73 30.26 0.22 0.083 2.18 3.59 1.90 Total BV 21.91 Market Price Estimated 65.72
Image of page 4
  • Fall '19
  • Generally Accepted Accounting Principles

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes