Exam 18: Financial Modeling and Pro Forma Analysis

Use the tables for the question(s) below. Pro Forma Income Statement for Ideko, 2010-2015 Pro Forma Balance Sheet for Ideko, 2010-2015 -The amount of the decrease in net working capital for Ideko in 2011 is closest to ________.

Use the tables for the question(s) below. Pro Forma Income Statement for Ideko, 2010-2015 Pro Forma Balance Sheet for Ideko, 2010-2015 -Assuming that Ideko has an EBITDA multiple of 9.4, then the continuation levered price-earnings ratio of Ideko in 2015 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 market size for Loppins is 80 million units. If SPI Inc. has a market share of 30% and the average sales price is $2 per Loppin, what is the dollar amount of sales of SPI?

The sustainable growth rate assumes that the firm will raise no new debt financing.

Use the tables for the question(s) below. Pro Forma Income Statement for Ideko, 2010-2015 Pro Forma Balance Sheet for Ideko, 2010-2015 -Assuming that Ideko has an EBITDA multiple of 8.5, then the continuation unlevered price-earnings ratio of Ideko in 2015 is closest to ________.

Given the following data for a given period, compute the free cash flow to the firm: Net Income = $5,000 After-tax Interest Expense = $500 Depreciation = $500 Increase in NWC = $1,000 Capital Expenditures = $2,000

Is total net working capital or incremental net working capital more relevant for calculation of free cash flow?

The market size for Loppins is 60 million units. If SPI Inc. has a market share of 20% and the average sales price is $3 per Loppin, what is the dollar amount of sales of SPI?

What is the implied assumption in percent of sales method?

LG Inc. has done a long-term forecast of its balance sheet. The projected total assets for the next year are $100 million. The current liabilities are projected to be $40 million and other long term liabilities are $30 million. How much net new financing is needed in the following year?

When the projected liabilities and equity are greater than the assets, the firm can plan to ________.

Pledrea Inc. has EBITDA at the forecast horizon of $13,000. Its EBITDA multiple is 10. What is the terminal value of the firm at the forecast horizon?

What is the free cash flow to equity holders for a firm with free cash flow of $7000, after-tax interest expense of $1,000, and an increase in debt of $3,000?

A services firm does all its business in cash only. The firm projects a cash balance of $4,000 in its account after all taxes and costs are paid. The owners plan to invest $7,000 and pay a dividend of $1,000. How much net new financing is needed?

A firm has $70 million in equity and $30 million of debt, it pays dividends of 30% of net income, and has a net income of $10 million. What is the firm's internal growth rate?

What is common starting point for forecasting?

Use the tables for the question(s) below. Pro Forma Income Statement for Ideko, 2010-2015 Pro Forma Balance Sheet for Ideko, 2010-2015 -Assuming that Ideko has an EBITDA multiple of 9.4, then the continuation unlevered price-earnings ratio of Ideko in 2015 is closest to ________.

________ is the maximum growth rate a firm can achieve without resorting to external financing.

Use the tables for the question(s) below. Pro Forma Income Statement for Ideko, 2010-2015 Pro Forma Balance Sheet for Ideko, 2010-2015 -Assuming that Ideko has an EBITDA multiple of 8.5, then the continuation enterprise value of Ideko in 2015 is closest to ________.