Question 1

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

Accepted Answer

A) $30,510 
B) $26,420 
C) $22,170 
D) $35,195 
A) $30,510 
B) $26,420 
C) $22,170 
D) $35,195

Question 2

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 EV/Sales ratio of Ideko in 2010 is closest to:

Accepted Answer

A) 1.9 
B) 1.7 
C) 1.6 
D) 1.8 
A) 1.9 
B) 1.7 
C) 1.6 
D) 1.8

Question 3

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

Accepted Answer

A) $4,090 
B) $4,685 
C) $3,665 
D) $5,230 
A) $4,090 
B) $4,685 
C) $3,665 
D) $5,230

Question 4

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 Luxottica is closest to:

Accepted Answer

A) 10.2% 
B) 13.5% 
C) 9.1% 
D) 14.7% 
A) 10.2% 
B) 13.5% 
C) 9.1% 
D) 14.7%

Question 5

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, 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:

Accepted Answer

A) $155 million 
B) $157 million 
C) $165 million 
D) $193 million 
A) $155 million 
B) $157 million 
C) $165 million 
D) $193 million

Question 6

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?

Accepted Answer

Low EV/EBITDA (Nike)= 9.3
Low EV = EBITD

Question 7

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 levered P/E ratio of Ideko in 2010 is closest to:

Accepted Answer

A) 17.2 
B) 14.5 
C) 19.0 
D) 16.4 
A) 17.2 
B) 14.5 
C) 19.0 
D) 16.4

Question 8

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:

Accepted Answer

A) 0.70 
B) 1.50 
C) 1.00 
D) 0.60 
A) 0.70 
B) 1.50 
C) 1.00 
D) 0.60

Question 9

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 2007 is closest to:

Accepted Answer

A) $14,525 
B) $16,970 
C) 22,710 
D) $19,690 
A) $14,525 
B) $16,970 
C) 22,710 
D) $19,690

The amount of net working capital for Ideko in 2007 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 EV/Sales ratio of Ideko in 2010 is closest to:

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

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 Luxottica 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 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 levered P/E ratio of Ideko in 2010 is closest to:

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:

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 2007 is closest to:

The Corporation

Introduction to Financial Statement Analysis

Financial Decision Making and the Law of One Price

The Time Value of Money

Interest Rates

Valuing Bonds

Investment Decision Rules

Fundamentals of Capital Budgeting

Valuing Stocks

Capital Markets and the Pricing of Risk

Optimal Portfolio Choice and the Capital Asset Pricing Model

Estimating the Cost of Capital

Investor Behavior and Capital Market Efficiency

Capital Structure in a Perfect Market

Debt and Taxes

Financial Distress, Managerial Incentives, and Information

Payout Policy

Capital Budgeting and Valuation With Leverage

Financial Options

Option Valuation

Real Options

Raising Equity Capital

Debt Financing

Leasing

Working Capital Management

Short-Term Financial Planning

Mergers and Acquisitions

Corporate Governance

Risk Management

International Corporate Finance

Filters

Exam 19: Valuation and Financial Modeling: a Case Study

The amount of net working capital for Ideko in 2007 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 EV/Sales ratio of Ideko in 2010 is closest to:

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

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 Luxottica 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 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 levered P/E ratio of Ideko in 2010 is closest to:

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:

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 2007 is closest to:

The Corporation

Introduction to Financial Statement Analysis

Financial Decision Making and the Law of One Price

The Time Value of Money

Interest Rates

Valuing Bonds

Investment Decision Rules

Fundamentals of Capital Budgeting

Valuing Stocks

Capital Markets and the Pricing of Risk

Optimal Portfolio Choice and the Capital Asset Pricing Model

Estimating the Cost of Capital

Investor Behavior and Capital Market Efficiency

Capital Structure in a Perfect Market

Debt and Taxes

Financial Distress, Managerial Incentives, and Information

Payout Policy

Capital Budgeting and Valuation With Leverage

Financial Options

Option Valuation

Real Options

Raising Equity Capital

Debt Financing

Leasing

Working Capital Management

Short-Term Financial Planning

Mergers and Acquisitions

Corporate Governance

Risk Management

International Corporate Finance

Filters