Exam 19: Valuation and Financial Modeling: a Case Study

Use the table for the question(s)below. Capital Structure and Unlevered Beta Estimates for Comparable Firms -The unlevered beta for Oakley is closest to:

Based upon the average EV/Sales ratio of the comparable firms,Ideko's target economic value is closest to:

Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation levered P/E ratio of Ideko in 2010 is closest to:

Based upon the average EV/Sales ratio of the comparable firms,if Ideko holds $6.5 million of cash in excess of its working capital needs,then Ideko's target market value of equity is closest to:

If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Nike is closest to:

The free cash flow to equity in 2008 is closest to:

If Ideko's future expected growth rate is 5% and its WACC is 9%,then the continuation value in 2010 is closest to:

What range for the market value of equity for Ideko is implied by the range of EV/EBITDA multiples for the comparable firms if Ideko holds $6.5 million of cash in excess of its working capital needs?

Use the following information to answer the question(s)below: Ideko's Planned Debt -If Ideko's loans will have an interest rate of 6.8%,then the interest expense paid in 2008 is closest to:

The after tax interest expense in 2010 is closest to:

Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation levered P/E ratio of Ideko in 2010 is closest to:

Use the following information to answer the question(s)below: -The after tax interest expense in 2008 is closest to:

Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation equity value of Ideko in 2010 is closest to:

The free cash flow to the firm in 2008 is closest to:

Use the table for the question(s)below. Pro Forma Income Statement for Ideko,2005-2010 -With the proper changes it is believed that Ideko's credit policies will allow for an account receivables days of 60.The forecasted accounts receivable for Ideko in 2006 is closest to:

The amount of net working capital for Ideko in 2007 is closest to:

The amount of net working capital for Ideko in 2006 is closest to:

Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation enterprise value of Ideko in 2010 is closest to:

Use the following information to answer the question(s)below: -If Ideko's future expected growth rate is 5%,then the estimated free cash flow for 2011 is closest to:

If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%,then the cost of capital for Luxottica is closest to: