答案和详解如下： 1.Using the information below, value the stock of Symphony Publishing, Inc. using the free cash flow from equity (FCFE) valuation method. §
Required return of 13.0%. §
Value at the end of year 3 of 13 times FCFE3. §
Shares outstanding: 10.0 million. §
Net income in year 1 of $10.0 million, projected to grow at 10% for the next two years. §
Depreciation per year of $3.0 million. §
Capital Expenditures per year of $2.5 million. §
Increase in working capital per year of $1.0 million. §
Principal repayments on debt per year of $1.5 million. The value per share of Symphony Publishing is approximately: A) $112.10. B) $16.90. C) $14.10. D) $11.21. The correct answer was D) Step 1: Calculate each year’s FCFE and discount at the required return
§
FCFE = net income + depreciation – capital expenditures – increase in working capital – principal repayments + new debt issues §
Year 1: 10.0 + 3.0 – 2.5 – 1.0 – 1.5 = 8.0, §
PV = 7.08 = 8.0 / (1.13)1, or FV=-8.0, I/Y=13, PMT=0, N = 1, Compute PV §
Year 2: 10.0 * (1.10) + 3.0 – 2.5 – 1.0 – 1.5 = 9.0, §
PV = 7.05 = 9.0 / (1.13)2, or FV=-9.0, I/Y=13, PMT=0, N = 2, Compute PV §
Year 3: 10.0 * (1.10)2 + 3.0 – 2.5 – 1.0 – 1.5 = 10.10 §
PV = 7.00 = 10.10 / (1.13)3, or FV=-10.10, I/Y=13, PMT=0, N = 3, Compute PV Step 2: Calculate Present Value of final cash flow times FCFE multiple §
Value at end of year 3 = FCFE3 * multiple = 10.10 * 13 = 131.30 §
PV = 91.00 = 131.30 / (1.13)3 , or using calculator, N=3, FV=-131.30, I/Y=13, PMT=0, Compute PV Step 3: Calculate per share value
§
Add up PV of FCFE and end value and divide by number of shares outstanding §
= (7.08 + 7.05 + 7.00 + 91.0) / 10.0 = 11.21
2.A firm currently has sales per share of $10.00, and expects sales to grow by 25 percent next year. The net profit margin is expected to be 15 percent. Fixed capital investment net of depreciation is projected to be 65 percent of the sales increase, and working capital requirements are 15 percent of the projected sales increase. Debt will finance 45 percent of the investments in net capital and working capital. The company has an 11 percent required rate of return on equity. What is the firm’s expected free cash flow to equity (FCFE) per share next year under these assumptions? A) $1.88. B) $0.77. C) $0.38. D) $1.63. The correct answer was B) FCFE = net profit – NetFCInv – WCInv + DebtFin = $1.88 – $1.63 – 0.38 + 0.90 = 0.77 3.SOX Inc. expects high growth in the next 4 years before slowing to a stable future growth of 3 percent. The firm is assumed to pay no dividends in the near future and has the following forecasted free cashflow to equity (FCFE) information on a per share basis in the high-growth period:
| Year 1 | Year 2 | Year 3 | Year 4 | FCFE | $3.05 | $4.10 | $5.24 | $6.71 |
High-growth period assumptions: §
SOX Inc.'s target debt ratio is 40 percent and a beta of 1.3. §
The long-term Treasury Bond Rate is 4.0 percent, and the expected equity risk premium is 6 percent. Stable-growth period assumptions: §
SOX Inc.'s target debt ratio is 40 percent and a beta of 1.0. §
The long-term Treasury Bond Rate is 4.0 percent and the expected equity risk premium is 6 percent. §
Capital expenditures are assumed to equal depreciation. §
In year 5, earnings are $8.10 per share while the change in working capital is $2.00 per share. §
Earnings and working capital are expected to grow by 3 percent a year in the future. In year 5, what is the free cashflow to equity (FCFE) for SOX Inc.? A) $6.10. B) $7.30. C) $9.30. D) $6.90. The correct answer was D) In year 5, FCFE = Earnings per share – (Capital Expenditures – Depreciation)(1- Debt Ratio) – Change in working capital (1 – Debt Ratio) = 8.10 – 0(1-0.4) – 2.00(1-0.4) = 6.90. 4.BOX Inc. earned $4.55 per share last year. The firm had capital expenditures of $1.75 per share and depreciation expense of $1.05. BOX Inc. has a target debt ratio of 0.25.
| High-Growth Period | Transitional Period | Stable-Growth Period | | Duration | 2 Years | 5 Years |
| | Earnings growth rate | 45% | Will decline 8% per year to 5% in the stable-growth period | 5% | | Growth in Capital Expenditures | 30% | Increases by 8% per year | Same as Depreciation | | Growth in Depreciation | 30% | Increases by 13% per year | Same as Capital Expenditures | | Change in Working Capital | Given Below | Given Below | $2.25 per share in Year 8 | | Shareholder Required Return | 25% | 15% | 10% | |
| Yr 0 | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | EPS | 4.55 | 6.60 | 9.57 | 13.11 | 16.91 | 20.46 | 23.12 | 24.27 | Capital Expenditures | 1.75 | 2.28 | 2.96 | 3.19 | 3.45 | 3.73 | 4.02 | 4.35 | Depreciation | 1.05 | 1.37 | 1.77 | 2.01 | 2.27 | 2.56 | 2.89 | 3.27 | Change in WC | 0.90 | 1.10 | 1.40 | 1.60 | 1.80 | 2.00 | 2.20 | 2.10 | FCFE |
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| 7.63 | 11.01 | 14.67 | 18.08 | 20.62 | 21.89 | | | | | | | | | | | | |
In year 1, what is the free cashflow to equity (FCFE) for BOX Inc.? A) $5.09. B) $1.85. C) $3.35. D) $6.10. The correct answer was A) Year 1 FCFE = Earnings per share – (Capital Expenditures – Depreciation)(1- Debt Ratio) – Change in working capital (1 – Debt Ratio) = 6.60 – (2.28 –1.37)(1-0.25) – (1.1)(1-0.25) = 5.09. | 
发表于 2008-5-20 12:32
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