答案和详解如下: 11.The following information was collected from the financial statements of the Hiller Corp. for the year ending December 31, 2000: §
Earnings per share = $4.50
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Capital Expenditures per share = $3.00
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Depreciation per share = $2.75
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Increase in working capital per share = $0.75
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Debt financing ratio = 30 percent
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Cost of equity = 12 percent
The financial leverage for the firm is expected to be stable. The FCFE for the base-year will be: A) $3.00. B) $4.15. C) $3.80. D) $4.85. The correct answer was C) Base-year FCFE = EPS - (Capex - Depr)*(1 - Debt Ratio) – Incr. in WC*(1 - Debt Ratio) = $ 4.50 - ($3.00 - $2.75)(1 - 0.30) - $0.75(1 - 0.30) = $3.80. 12. If earnings, capital expenditures, depreciation and working capital are all expected to grow constantly at 5 percent, the value per share using stable-growth FCFE model will be: A) $54.29. B) $62.84. C) $57.00. D) $72.75. The correct answer was C) Value per share = $57.00 = ($3.80 * 1.05)/(0.12 - 0.05). 13.The following table provides background information on a per share basis for TOY, Inc., in the year 0: Current Information | Year 0 | Earnings | $5.00 | Capital Expenditures | $2.40 | Depreciation | $1.80 | Change in Working Capital | $1.70 |
TOY, Inc.'s, target debt ratio is 30 percent and has a required rate of return of 12 percent. Earnings, capital expenditures, depreciation, and working capital are all expected to grow by 5 percent a year in the future. In year 1, what is the forecasted free cashflow to equity (FCFE) for TOY, Inc.? A) $4.31. B) $4.53. C) $6.06. D) $3.56. The correct answer was D) Earnings = 5*1.05 = 5.25, capital expenditures = 2.4*1.05 = 2.52, deprecation = 1.8*1.05 = 1.89, change in working capital = 1.7*1.05 = 1.785, FCFE = Earnings per share – (Capital Expenditures – Depreciation)(1 - Debt Ratio) – Change in working capital (1 – Debt Ratio) = 5.25 – (2.52 – 1.89)(1 - 0.3) – (1.785)(1 - 0.3) = 3.56. 14.What is the value of TOY, Inc.'s, stock given the above assumptions? A) $61.57. B) $64.71. C) $50.86. D) $86.57. The correct answer was C) The value of the stock = FCFE1/(r-gn) = 3.56/(0.12 - 0.05) = 50.86. 15.A firm's free cash flow to equity (FCFE) in the most recent year is $50M and is expected to grow at 5 percent per year forever. If its shareholders require a return of 12 percent, the value of the firm's equity using the single-stage FCFE model is: A) $417M. B) $437M. C) $750M. D) $714M. The correct answer was C) The value of the firm's equity is: $50M x 1.05/(0.12 - 0.05) = $750M |