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    Karan Gupta
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    1. The document provides financial information for Anheuser Busch including its unlevered beta, the risk free rate, market risk premium, debt levels from 1994-2000, the company's D/E ratios, levered betas, and cost of equity over this period. 2. It also includes financial metrics such as EBIT, interest, taxes, net income, capital invested, and cost of capital from 1992-1995 as well as growth rates for EBIT. 3. The value of the firm is calculated as $98632.3947 based on the provided information.

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    1. The document provides financial information for Anheuser Busch including its unlevered beta, the risk free rate, market risk premium, debt levels from 1994-2000, the company's D/E ratios, levered betas, and cost of equity over this period. 2. It also includes financial metrics such as EBIT, interest, taxes, net income, capital invested, and cost of capital from 1992-1995 as well as growth rates for EBIT. 3. The value of the firm is calculated as $98632.3947 based on the provided information.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    12 views2 pages

    BBC Reference

    Uploaded by

    Karan Gupta
    1. The document provides financial information for Anheuser Busch including its unlevered beta, the risk free rate, market risk premium, debt levels from 1994-2000, the company's D/E ratios, levered betas, and cost of equity over this period. 2. It also includes financial metrics such as EBIT, interest, taxes, net income, capital invested, and cost of capital from 1992-1995 as well as growth rates for EBIT. 3. The value of the firm is calculated as $98632.3947 based on the provided information.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Cost of Capital

    Average unlevered beta


    Risk free rate
    Market risk premium
    Annheuser Busch Unlevered beta

    1
    6.26% (In exhibit 3)
    7.25% (Assumption)
    1 (In exhibit 3)
    1994

    Repayment of debt
    Debt remaining

    1900

    Equity

    1995
    75
    1825

    1996
    75
    1750

    26708

    26708

    D/E ratio

    0.0683316 0.065523

    BBC Levered Beta

    1.0683316 1.065523

    ke

    EBIT
    Interest
    EBT
    Tax
    Tax %
    pat
    Growth in EBIT

    14.01%

    13.99%

    1992
    1769

    1993
    4896

    1994
    8886

    1645
    691
    42%

    4894
    2040
    42%

    9085
    3765
    41%

    176.77%

    81.50%

    10854

    8550

    Capital Invested
    Cost of Capital
    EVA
    PV of firm
    Value of firm

    98632.3947

    Share value

    5.14192445

    1997
    75
    1675

    1998
    75
    1600

    1999
    100
    1500

    2000
    100
    1400

    26708

    26708

    26708

    26708

    (Debt schedule in Exhibit 5g)

    0.062715 0.059907 0.056163 0.052419


    1.062715 1.059907 1.056163 1.052419
    13.96%

    13.94%

    13.92%

    1995
    14217.6
    209.875
    14007.73
    5603.09
    40%
    8404.635
    60%

    1996
    19904.64
    201.25
    19703.39
    7881.356
    40%
    11822.03
    40%

    1997
    23885.57
    192.625
    23692.94
    9477.177
    40%
    14215.77
    20%

    13.89%

    TV
    25079.85
    184
    (Interest rate in Exhibit 5g)
    24895.85
    9958.339
    40%
    (Assumption)
    14937.51
    5%
    (Assumption)

    35182.74 35107.74 35032.74 34957.74


    14.01%
    13.99%
    13.96%
    13.94%
    3477.15 6912.201 9323.554 72164.74
    3049.987 5320.11 6298.985 48780.57

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