Exam 18: Financial Modeling and Pro Forma Analysis

Use the information about Billy's Burgers to answer the following question(s): Billy's Burgers -Using the percent of sales method, and assuming 20% growth in sales, estimate Billy's Burgers' depreciation for 2011.

The market size for Loppins is 60 million units. If SPI Inc. has a market share of 20% and the average sales price is $3 per Loppin, what is the dollar amount of sales of SPI?

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 an EBITDA multiple of 8.5, then the continuation unlevered price-earnings ratio of Ideko in 2015 is closest to ________.

A firm has $80 million in equity and $40 million of debt, it pays dividends of 20% of net income, and has a net income of $10 million. What is the firm's sustainable growth rate?

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

Given the following data for a given period, compute the free cash flow to the firm: Net Income = $12,000 After-tax Interest Expense = $2,000 Depreciation = $1,000 Increase in NWC = $2,000 Capital Expenditures = $1,000

A services firm does all its business in cash only. The firm projects a cash balance of $4,000 in its account after all taxes and costs are paid. The owners plan to invest $7,000 and pay a dividend of $1,000. How much net new financing is needed?

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?

What is the free cash flow to equity holders for a firm with free cash flow of $9,000, after-tax interest expense of $3,000, and an increase in debt of $1,000?

The maximum growth rate that a firm can achieve without issuing new equity or by increasing its debt to equity ratio is the firm's sustainable growth rate.

Use the information about Billy's Burgers to answer the following question(s): Billy's Burgers -Using the percent of sales method, and assuming 20% growth in sales and no change in interest expense, estimate Billy's Burgers' Pretax Income for 2011.

If a firm is planning an expansion or changes in how it manages its inventory, long term financial planning can help determine the impact on the firm's ________.

When the projected liabilities and equity are greater than the assets, the firm can plan to ________.

Building a model for long-term forecasting reveals points in the future where the firm will need ________ when retained earnings are not enough to fund planned future investments.

What is the free cash flow to equity holders for a firm with free cash flow of $7000, after-tax interest expense of $1,000, and an increase in debt of $3,000?

Which of the following accounts may reasonably be expected to grow with sales? I. Accounts Receivable II. Accounts Payable III. Property, Plant and Equipment IV. Inventory V. Long-Term Debt

Compute the after-tax interest expense for a firm with Interest on Excess Cash = $1,000, Interest on Debt = $5,000, and a tax rate of 30%.

Use the table for the question(s)below. Ideko Sales and Operating Cost Assumptions -Based upon Ideko's Sales and Operating Cost Assumptions, what production capacity will Ideko require in 2008?

LG Inc. has done a long-term forecast of its balance sheet. The projected total assets for the next year are $200 million. The current liabilities are projected to be $100 million and other long term liabilities are $70 million. How much net new financing is needed in the following year?

The market size for Loppins is 40 million units. If SPI Inc. has a market share of 40% and the average sales price is $3 per Loppin, what is the dollar amount of sales of SPI?