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# ASTRAL.XLS This Spreadsheet supports STUDENT analysis of the case, &quot;Astral Records Ltd., North America: Some Financial Concerns.&quot; (UVA...

Estimate Astral’s weighted average cost of capital (WACC

ASTRAL.XLS Please note: Revised: 7/7/98. Copyright (C) 1998, by the University of Virginia Darden School Foundation. This Spreadsheet supports STUDENT analysis of the case, "Astral Records Ltd., North America: Some Financial Concerns." (UVA -F- 1065, v. 1.5 ) 1) This is a working model. Assumptions / Inputs presented can be changed to vary the results. 2) As long as default spreadsheet calculation is "automatic" the impact of changing assumptions will be computed in real time. If calculation is set as "manual" you should press the F9 function key to recalculate results. To set numerical calculation settings to automatic look under tools, options, calculations menu. 3) This model intentionally incorporates a circular reference in its logic. In order to resolve this circularity, please instruct Excel to "iterate" 20 or so times in recalculating the model. This may be done by clicking on Tools/Options/Calculation, and then on Iteration.
Exhibit 1 ASTRAL RECORDS Historical and Projected Income Statements Fiscal Year Ended August 23 1990 1991 1992 1993 (Actual) (Actual) (Actual) (Actual) 1 Sales 26,202 28,822 34,010 39,792 Operating Expenses: 2 Production Costs and Expenses 11,950 13,380 17,847 22,335 3 Admin. and Selling Expenses 5,734 5,967 7,020 7,970 3 Depreciation 2,376 2,367 2,667 2,667 4 Total Operating Expenses (20,060) (21,714) (27,534) (32,972) 5 Operating Margin 6,142 7,109 6,476 6,820 6 Interest Expense (2,427) (2,535) (3,265) (3,222) 7 Earnings Before Taxes 3,715 4,574 3,212 3,598 8 Income Taxes (1,647) (1,845) (1,269) (1,403) 9 Net Earnings 2,068 2,729 1,943 2,195 Dividends on : 15 Dividends to All Common Shs 1,000 1,000 1,000 1,000 16 Retentions of Earnings 1,068 1,729 943 1,195
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ASTRAL.XLS This Spreadsheet supports STUDENT analysis of the case, &quot;Astral
Records Ltd., North America: Some Financial Concerns.&quot; (UVA -F1065, v. 1.5 )
1) This is a working...

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