Question 1

Use the following information to answer the question(s)below:    
-The after tax interest expense in 2010 is closest to:

Accepted Answer

A) 0 
B) 2856 
C) 5304 
D) 8160 
A) 0 
B) 2856 
C) 5304 
D) 8160

Question 2

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?

Accepted Answer

A) 1505 units 
B) 1115 units 
C) 1323 units 
D) 1702 units 
A) 1505 units 
B) 1115 units 
C) 1323 units 
D) 1702 units

Question 3

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

Question 4

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:

Accepted Answer

A) $152.8 million 
B) $272.8 million 
C) $301.7 million 
D) $181.7 million 
A) $152.8 million 
B) $272.8 million 
C) $301.7 million 
D) $181.7 million

Question 5

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

Accepted Answer

A) $4090 
B) $4685 
C) $3665 
D) $5230 
A) $4090 
B) $4685 
C) $3665 
D) $5230

Question 6

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?

Accepted Answer

A) 1505 units 
B) 1323 units 
C) 1914 units 
D) 1115 units 
A) 1505 units 
B) 1323 units 
C) 1914 units 
D) 1115 units

Question 7

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

Accepted Answer

A) -5005 
B) -1755 
C) 5575 
D) 14,995 
A) -5005 
B) -1755 
C) 5575 
D) 14,995

Question 8

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:

Accepted Answer

A) 17.2 
B) 16.4 
C) 14.5 
D) 19.4 
A) 17.2 
B) 16.4 
C) 14.5 
D) 19.4

Question 9

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

Accepted Answer

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

Question 10

Use the following information to answer the question(s)below:    
-If Ideko's future expected growth rate is 5%,then the estimated free cash flow for 2011 is closest to:

Accepted Answer

A) 6568 
B) 11,151 
C) 11,218 
D) 12,137 
A) 6568 
B) 11,151 
C) 11,218 
D) 12,137

Question 11

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:

Accepted Answer

A) $181.7 million 
B) $272.8 million 
C) $152.8 million 
D) $301.7 million 
A) $181.7 million 
B) $272.8 million 
C) $152.8 million 
D) $301.7 million

Question 12

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 Nike is closest to:

Accepted Answer

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

Question 13

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 2008 is closest to:

Accepted Answer

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

Question 14

What is the purpose of the sensitivity analysis?

Accepted Answer

Any financial valuation is only as accur

Question 15

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.

Accepted Answer

@#IMG-DLM& After Tax interest expense is

Question 16

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:

Accepted Answer

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

Question 17

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

Accepted Answer

A) 6255 
B) 10,684 
C) 11,559 
D) 18,394 
A) 6255 
B) 10,684 
C) 11,559 
D) 18,394

Question 18

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 19

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

Accepted Answer

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

Question 20

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?

Accepted Answer

A) 1702 units 
B) 1323 units 
C) 1505 units 
D) 1914 units 
A) 1702 units 
B) 1323 units 
C) 1505 units 
D) 1914 units

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

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 table for the question(s)below. Pro Forma Income Statement for Ideko,2005-2010 -The amount of the increase in net working capital for Ideko in 2007 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 following information to answer the question(s)below: -The free cash flow to the firm in 2008 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 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 levered P/E ratio of Ideko in 2010 is closest to:

Use the following information to answer the question(s)below: -If Ideko's future expected growth rate is 5%,then the estimated free cash flow for 2011 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 equity value of Ideko in 2010 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 Nike 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 2008 is closest to:

What is the purpose of the sensitivity analysis?

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. 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 following information to answer the question(s)below: -The free cash flow to equity in 2010 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:

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 EV/Sales 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 2008?

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

Filters

Exam 19: Valuation and Financial Modeling: a Case Study

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

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 table for the question(s)below. Pro Forma Income Statement for Ideko,2005-2010 -The amount of the increase in net working capital for Ideko in 2007 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 following information to answer the question(s)below: -The free cash flow to the firm in 2008 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 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 levered P/E ratio of Ideko in 2010 is closest to:

Use the following information to answer the question(s)below: -If Ideko's future expected growth rate is 5%,then the estimated free cash flow for 2011 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 equity value of Ideko in 2010 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 Nike 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 2008 is closest to:

What is the purpose of the sensitivity analysis?

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. 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 following information to answer the question(s)below: -The free cash flow to equity in 2010 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:

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 EV/Sales 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 2008?

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

Filters