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:

Use the table for the question(s)below. Pro Forma Income Statement for Ideko,2005-2010 -The amount of net working capital for Ideko in 2006 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 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/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:

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 2009 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 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 Nike 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 8.5,then the continuation unlevered P/E ratio of Ideko in 2010 is closest to:

Use the table for the question(s)below. Pro Forma Income Statement for Ideko,2005-2010 -The amount of net working capital for Ideko in 2007 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:

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:

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

Use the table for the question(s)below. Pro Forma Income Statement for Ideko,2005-2010 -The amount of net working capital for Ideko in 2008 is closest to:

What range for the market value of equity for Ideko is implied by the range of P/E multiples for the comparable firms?

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 P/E ratio of the comparable firms,Ideko's target market value of equity 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 Oakley is closest to:

Use the following information to answer the question(s)below: -The free cash flow to the firm in 2010 is closest to:

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