PROBLEM 3-1: Clayton Manufacturing Company
Given
EBITDA (Year 1)
Growth Rate in EBITDA
Initial investment
Depreciation (Straight line) over
Estimated salvage value
Tax rate
Cost of capital
Solution Legend
$200,000
5%
$800,000
5 years
$35%
12%
= Value give
PROBLEM 10-5
Given
EBITDA 2009
Added EBITDA
Funding need
VC's required rate
Rate on convertible debt
Term
EBITDA multiple
EBITDA growth rate
Solution Legend
$4,000,000
1,000,000
5,800,000
25.0%
8.0%
5
years
5
20.0%
= Value given in problem
= Formula/Calcu
PROBLEM 3-9: ConocoPhillips Natural Gas Wellhead Project
Given
ConocoPhillips's Cost of Capital for project
Project life
15.00%
10 years
Solution
Solution Legend
1.
0
$1,200,000
145,000
Investment
Increase in NWC
MACRS Depr Rate (7 year)
Natural Gas Wellh
PROBLEM 4-4
Given
Liabilities and Owner's Capital
December 31, 2006
Balance Sheet
Invested Capital
(Book Values)
(Market Values)
Solution Legend
Current liabilities
Accounts payable
Notes payable
Other current liabilities`
Total current liabilities
$8,250
PROBLEM 8-1
Given
Sale price
Square footage
Selling price/sq ft
Time on the market
Comp #1
$240,000.00
2,240
$107.14
61 days
Solution
a.
Average price per square foot
Estimated Value
b.
c.
Solution Legend
Comp #2
2121 Tartar Circle
$265,000.00
3,000
2,145
Given
Incremental revenue growth for years 1-5
Revenues (current)
Incremental Revenues
CAPEX for year 0
CAPEX for years 1-5
Maintenance expense for years 1-5
Depreciable life of ovens
Depreciation Expense
Tax rate
Discount Rate
10.0%
$9,000,000
$900,000
$
PROBLEM 11-6
Given
Initial investment
Total PCs scrapped
Electronic scrap per PC
Gold content
Life of project
PCs scrapped per year
Tons of scrap per year
Current price of gold
Cost/ton for processing
Tax rate
Risk free rate
WACC
Growth in gold prices
For
Cryst al Ball Dat a
Workbook Variables
Name:
Value:
Last Var Column
Workshe e t Dat a
Last Data Column Used
Sheet Ref
Err:509
Err:509
0
2
Sheet Guid
9739094b-1f3a-4fac-bdab-7a465b2217d2
24477a0e-7b89-42f0-8d25-7a81f077a029
Deleted sheet count
Last row use
PROBLEM 5-5
a. For this evaluation, I would use multiple-discount rates to determine the
equity of the business segments. The reason I would choose multiple
discount versus single discount is because the business segments are
completely different and some
PROBLEM 6-12
Solution Legend
Given (refer to problem 6-7):
Balance Sheet
Cash and Marketable Securities
Accounts Receivable
Inventories
Current Assets
Net Property Plant & Equipment
Total
2010
$500
6,000
9,500
$16,000
17,000
$33,000
Accounts Payable
Short
Problem23
PROBLEM 2-3
Given
Growth rate for years 1-5
EBIT (1)
CAPEX for year 0
CAPEX for years 1-5
Depreciation Expense
Tax rate
Debt Retirements for years 1-5
New working capital for years 1-5
Solution Legend
= Value given in problem
= Formula/Calculati