. Using the Base Case, calculate the annual sales growth for 2020E...

. Using the Base Case, calculate the annual sales growth for 2020E using a weighted-moving average of the past three years' growth rates, with the most recent year given a weight of 3, the next given a weight of 2 and the oldest given a weight of 1. What is the growth rate? Use this rate (exact calculation) for the entire forecast period in the Base Case.

10.60%

9.40%

8.50%

7.60%

 

2.  Using the Base Case, calculate total depreciation expense for the year 2023E. Assume that depreciation expense on assets pre-2020E is $15,000 per year. Depreciation on capital expenditures made from 2020E-2024E assumes a 4-year useful life and a salvage value equal to 10% of the original cost.

$20,000

$30,000

$19,500

$33,000

3. Using the Base Case, calculate the change in non-cash working capital in 2024E.

-$2,446

$2,446

$1,322

-$1,322

 

 

 

 

 

4. Using the Low Case, calculate EBITDA in 2022E.

$25,634

$24,434

$43,634

$60,144

 

5. Using the Low Case, calculate the PP&E Turnover ratio for 2021E.

5.3x

0.5x

5.1x

2.4x

 

6. Using the High Case, calculate interest expense in 2021E.

$800

$1,200

$400

$829

 

7. Using the High Case, calculate the Debt-to-Total Capital ratio for 2020E.

0.10x

0.18x

0.15x

0.09x

8. Using the High Case, which of the following years has the lowest ROE?

2019

2018

2021E

2020E

 

9. What is the Terminal Value based on the average of:

1) The terminal value based on a perpetual growth rate, and;

2) The terminal value based on the EBITDA exit multiple assumption outlined on the "Control Panel" tab

$599,446

$400,206

$454,756

$450,323

 

10. What is the weighted-average cost of capital (WACC) based on Company XYZ's current capitalization and comps values?

7.90%

9.00%

8.30%

9.50%

 

 

 

 

 

11. What is Company XYZ's intrinsic equity value using the WACC as the discount rate and assuming the terminal value is based on the EBITDA exit multiple?

$314,050

$335,198

$342,156

$315,198

 

12. Based on comparable trading metrics, what is the implied enterprise value if the median P/E ratio is used as the basis for valuation?

$325,618

$315,618

$305,618

$295,618

 

13. If an investment using the value implied by the median EV/EBITDA multiple from the comps is made at the transaction date, what is the implied IRR? Assume the terminal value is the average of the values determined using the perpetual growth rate and an EBITDA exit multiple.

9.51%

9.12%

8.88%

9.55%

 

14. What is the discount factor for a semi-annual coupon that will be received in 12 months if the quoted annual yield is 8%?

0.86

0.93

0.75

0.92