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/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:

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 2008 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,Ideko's target economic value 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 2008 is closest to:

What range for the market value of equity for Ideko is implied by the range of EV/Sales 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: -If Ideko's future expected growth rate is 5% and its WACC is 9%,then the continuation value 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 EV/Sales ratio of Ideko in 2010 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 equity value of Ideko in 2010 is closest to: