Most Recent 2010 Factors

Part 1. Balance Sheet

Assets
Cash 10 0.25%
Accounts receivable 375 11.00%
Inventories 615 16.00%
Total current assets 1000
Net plant and equipment 1000 0.3333
Total assets (TA) 2000
Liabilities and equity
Accounts payable 60 0.02
Accruals 140 0.04
Notes payable 110 0.05
Total current liabilities 310
Long-term bonds 754 0.37
Total liabilities 1064
Preferred stock 40 0.03
Common stock 130
Retained earnings 766
Total common equity 896 0.55
Total liabilities and equity 2000
Investor-supplied capital 1800

Part 2. Income Statement

Sales 3000 110%
Costs except depreciation 2616.2 86%
Depreciation 100 10.20%
Total operating costs 2716.2
EBIT 283.8
Less: Interest on notes 9.9 8.50%
Interest on bonds 78.1 10.50%
Earnings before taxes (EBT) 195.8
Taxes (40%) 78.3200000000001 40.00%
NI before preferred dividends 117.48
Preferred dividends 4 9.50%
NI available to common 113.48
Dividends paid out 57.5 40.00%
Addition to retained earnings 56
Change in shares outstanding
Ending shares outstanding 50
Earnings per share, EPS 2.27
Dividends per share, DPS 1.15

Calculation of Free Cash Flows

Current Assets $ 1,000.00

Current Liablities $ 200.00
Net Operating Working Capital $ 800.00
Net Plant and Equipment $ 1,000.00
Total Operating Capital $ 1,800.00
Net Operating Profit After Tax $ 170.28
Investment in Op. Capital

Free Cash Flow

WACC 15%

Present Values of FCF

Horizon Value $ 322.70
Long Term Growth 5%
Present Values of HV $ 121.32

Value of Operations $ 509.50

value of non operations $ -
Total Value of the firm $ 509.50
Debt $ 754.00
Preferred Stock $ 40.00
Value of the firm $ -284.50
 2011 2012 2013 2014 2015

8.25 9.08 9.98 10.98 12.08

363.00 399.30 439.23 483.15 531.47
528.00 580.80 638.88 702.77 773.04
899.25 989.18 1088.09 1196.90 1316.59
1099.89 1209.88 1330.87 1463.95 1610.35
1999.14 2199.05 2418.96 2660.86 2926.94

66 72.6 79.86 87.846 96.63

132 145.2 159.72 175.692 193.26
% of investor-sup-cap 90.06 99.06 108.97 119.87 131.85
288.06 316.86 348.55 383.40 421.74
% of investor-sup-cap 666.42 733.06 806.37 887.01 975.71
954.48 1049.93 1154.92 1270.41 1397.45
% of investor-sup-cap 54.03 59.44 65.38 71.92 79.11
131.28 124.40 168.07 159.74 150.57
859.35 965.29 1030.59 1158.79 1299.81
% of investor-sup-cap 990.63 1089.69 1198.66 1318.52 1450.38
1999.14 2199.05 2418.96 2660.86 2926.94
1801.14 1981.25 2179.38 2397.32 2637.05

3300 3630 3993 4392.3 4831.53

2838 3121.80 3433.98 3777.38 4155.12
112.19 123.41 135.75 149.32 164.26
2950.19 3245.21 3569.73 3926.70 4319.37
349.81 384.79 423.27 465.60 512.16
Interest rate x Avg notes 8.50 8.04 8.84 9.73 10.70
Interest rate x Avg bonds 74.57 73.47 80.82 88.90 97.79
266.74 303.28 333.61 366.97 403.67
106.69 121.31 133.44 146.79 161.47
160.04 181.97 114.76 220.18 242.20
4.47 5.39 5.93 6.52 7.17
155.58 176.58 108.83 213.66 235.03
62.23 70.63 43.53 85.46 94.01
93.35 105.95 65.30 128.20 141.02
0.06 -0.30 56.16 1.24 1.14
50.06 -0.30 48.30 51.29 0.84
3.20 -607.90 41.53 4.29 288.78
 1.33 -253.97 35.72 1.79 120.64

$ 899.25 $ 989.18 $ 1,088.09 $ 1,196.90 $ 1,316.59

$ 198.00 $ 217.80 $ 239.58 $ 263.54 $ 289.89
$ 701.25 $ 771.38 $ 848.51 $ 933.36 $ 1,026.70
$ 1,099.89 $ 1,209.88 $ 1,330.87 $ 1,463.95 $ 1,610.35
$ 1,801.14 $ 1,981.25 $ 2,179.38 $ 2,397.32 $ 2,637.05
$ 209.89 $ 230.88 $ 253.96 $ 279.36 $ 307.30
$ 1.14 $ 180.11 $ 198.13 $ 217.94 $ 239.73

$ 208.75 $ 50.76 $ 55.84 $ 61.42 $ 67.56

$ 1.00 $ 2.00 $ 3.00 $ 4.00 $ 5.00

$ 181.52 $ 38.38 $ 36.71 $ 35.12 $ 33.59
2016 2017

13.29 14.62
584.62 643.08
850.35 935.38
1448.25 1593.08
1771.38 1948.52
3219.63 3541.60

106.29 116.92
212.59 233.85
145.04 159.54
463.92 510.31
1073.28 1180.61
1537.20 1690.92
87.02 95.72
140.49 129.40
1454.92 1625.55
1595.41 1754.96
3219.63 3541.60
2900.75 3190.83

5314.683 5846.1513
4570.63 5027.69
180.68 198.75
4751.31 5226.44
563.37 619.71
11.77 12.94
107.57 118.33
444.03 488.44
177.61 195.38
266.42 293.06
7.89 8.68
258.53 284.38
103.41 113.75
155.12 170.63
-1.20 -1.32
47.10 49.97
5.66 5.86
 2.36 2.45

$ 1,448.25 $ 1,593.08
$ 318.88 $ 350.77
$ 1,129.37 $ 1,242.31
$ 1,771.38 $ 1,948.52
$ 2,900.75 $ 3,190.83
$ 338.02 $ 371.83
$ 263.70 $ 290.08

$ 74.32 $ 81.75

$ 6.00 $ 7.00
$ 32.13 $ 30.73