November 2007
Intermediate to advanced
469 pages
16h 6m
English
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Appendix C
Answers to Selected End-of-Chapter Problems
CHAPTER 2
- 2.1. After-tax cash flow = $135, 000.
- 2.4.
- Applying the comparable EBITDA multiple to Fleet's 2004 EBITDA yields: 56.7 × 6 = $340 million.
- Cost of debt = 7%, cost of equity = 4.5% + (1.32)(4.4%) + 3.9% = 14.4%, WACC = 9.27%.
- 2.5. Cost of equity = 4.5% + (0.66)(4.4%) + 3.9% = 11.3%.
- 2.8.
- (b)
Enterprise value $1,198.4 million Debt 650.0 Equity 548.4 Shares 35 Value per share $15.67 - (c)
- (b)
- 2.11. EPS2013 = (0.99)(1.185)5(1.09)5 = $3.6
Dividend2014 = (0.51)(3.6)(1.04) = $1.9
Share value2013 = 1.9/(0.10 − 0.04) = $31.7
Share value2002 = $31.7/(1.12)10 = $10.2.
CHAPTER 3
- 3.3. Required return on the S&P 500 index: k = 9% + (4%)(1) = 13.0%.
- P/E0 = Payout (1 + g)/(k − g) or
versus a compound growth rate of earnings during the post-war period of about 2%.
- The long-term nominal growth of earnings and dividends would be about (1.02)(1.045) − 1 = 6.6%. Hence,
where D0/E0 = 0.614 and P/E0 = 21.2. Solving for k, it ...
- P/E0 = Payout (1 + g)/(k − g) or
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O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
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I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.