Exam 19: Valuation and Financial Modeling: a Case Study

Use the tables for the question(s)below. Estimated 2005 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, Ideko's target economic value is closest to:

Use the tables for the question(s)below. Pro Forma Income Statement for Ideko, 2005-2010 Pro Forma Balance Sheet for Ideko, 2005-2010 -Assuming that Ideko has a EBITDA multiple of 8.5, then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:

Use the tables for the question(s)below. Estimated 2005 Income Statement and Balance Sheet Data for Ideko Corporation -Ideko's Accounts Receivable Days is closest to:

Use the tables for the question(s)below. Pro Forma Income Statement for Ideko, 2005-2010 Pro Forma Balance Sheet for Ideko, 2005-2010 -Assuming that Ideko has a EBITDA multiple of 9.4, then the continuation equity value of Ideko in 2010 is closest to:

Use the tables for the question(s)below. Pro Forma Income Statement for Ideko, 2005-2010 Pro Forma Balance Sheet for Ideko, 2005-2010 -Assuming that Ideko has a EBITDA multiple of 8.5, then the continuation enterprise value of Ideko in 2010 is closest to:

Use the tables for the question(s)below. Pro Forma Income Statement for Ideko, 2005-2010 Pro Forma Balance Sheet for Ideko, 2005-2010 -Assuming that Ideko has a EBITDA multiple of 9.4, then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:

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 2009?

Use the tables for the question(s)below. Pro Forma Income Statement for Ideko, 2005-2010 Pro Forma Balance Sheet for Ideko, 2005-2010 -Assuming that Ideko has a EBITDA multiple of 8.5, then the continuation equity value of Ideko in 2010 is closest to:

What is the purpose of the sensitivity analysis?

Use the table for the question(s)below. Capital Structure and Unlevered Beta Estimates for Comparable Firms -If the risk-free rate of interest is 6% and the market risk premium has historically averaged 5%, then the cost of capital for Oakley is closest to:

The free cash flow to equity in 2010 is closest to:

Use the following information to answer the question(s)below: -The free cash flow to the firm in 2008 is closest to:

Using the income statement above and the following information: Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2009.

Use the tables for the question(s)below. Pro Forma Income Statement for Ideko, 2005-2010 Pro Forma Balance Sheet for Ideko, 2005-2010 -Assuming that Ideko has a EBITDA multiple of 9.4, then the continuation enterprise value of Ideko in 2010 is closest to:

Use the tables for the question(s)below. Estimated 2005 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:

Using the income statement above and the following information: Calculate Ideko's Free Cash Flow to the Firm and Free Cash Flow to Equity in 2007.

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

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 2007?

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:

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