Exam 18: Financial Modelling and Pro Forma Analysis

Use the tables for the question(s)below. Pro Forma Income Statement for Ideko,2010-2015 Pro Forma Balance Sheet for Ideko,2010-2015 -Assuming that Ideko has a EBITDA multiple of 9.4,then the continuation equity value of Ideko in 2015 is closest to:

What is the free cash flow to equity holders for a firm with free cash flow of $9000,after-tax interest expense of $3000,and an increase in debt of $1000?

Pledrea Inc.has EBITDA at the forecast horizon of $13,000.Its EBITDA multiple is 10.What is the terminal value of the firm at the forecast horizon?

Use the information about Billy's Burgers to answer the following question(s): -Using the percent of sales method,and assuming 20% growth in sales and no change in interest expense,estimate Billy's Burgers' net income for 2016.

A firm expects growth next year to be 10%.Its sustainable growth rate is 12%.Which of the following is TRUE?

Use the tables for the question(s)below. Estimated 2010 Income Statement and Balance Sheet Data for Ideko Corporation The following are financial ratios for three comparable companies: -Based upon the average EV/EBITDA 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:

The asset and liability side of a pro forma balance sheet projection will not balance,in general,unless we make assumptions about how ________ and ________ will grow with sales.

Use the table for the question(s)below. -The amount of net working capital for Ideko in 2016 is closest to:

Given the following data for a given period,compute the free cash flow to the firm: Net Income = $10,000 After-tax Interest Expense = $1000 Depreciation = $1000 Increase in NWC = $1000 Capital Expenditures = $2000

A firm has ROA of 12%,ROE of 20%,and a retention rate of 40%.What is the firm's internal growth rate?

Use the table for the question(s)below. -The amount of net working capital for Ideko in 2015 is closest to:

Pledrea Inc.has EBITDA at the forecast horizon of $10,000.Its EBITDA multiple is 11.What is the terminal value of the firm at the forecast horizon?

Use the information about Billy's Burgers to answer the following question(s): -Using the percent of sales method,and assuming 20% growth in sales,estimate Billy's Burgers' inventory for 2016.

Use the tables for the question(s)below. Pro Forma Income Statement for Ideko,2010-2015 Pro Forma Balance Sheet for Ideko,2010-2015 -Assuming that Ideko has a EBITDA multiple of 8.5,then the continuation enterprise value of Ideko in 2015 is closest to:

Use the tables for the question(s)below. Estimated 2010 Income Statement and Balance Sheet Data for Ideko Corporation The following are financial ratios for three comparable companies: -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:

Compute the value of a firm with free cash flows of $4000,$4500,and $5000 over the next three years,a terminal firm value of $60,000 after three years,and the unlevered cost of capital is 10%.Assume that the interest rate tax shield is zero.

Use the tables for the question(s)below. Estimated 2010 Income Statement and Balance Sheet Data for Ideko Corporation The following are financial ratios for three comparable companies: -Based upon the average EV/EBITDA ratio of the comparable firms,Ideko's target economic value is closest to:

The goal of the financial manager is to maximize the value of the shareholder's stake in the firm.

The estimate of a firm's value at the end of the forecast horizon using a valuation multiple is also called its:

Use the table for the question(s)below. -The amount of the increase in net working capital for Ideko in 2016 is closest to: