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1052 Final Exam
1052 Final Exam
1052 Final Exam
Final Examination
THIS BUD’S FOR WHO? THE BATTLE FOR ANHEUSER-BUSCH
Due Date: 3/21/2023
1052 - MSc in Accounting & Finance Claude Cohen:
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ACADEMIC YEAR 2022-2023
Group Number:
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Exhibit 1
THIS BUD’S FOR WHO? THE BATTLE FOR ANHEUSER-BUSCH
Anheuser-Busch Key Financials, 2004–2007
A3:HA3:I38
Year ended Dec. 31 (in millions, except where noted) 2004 2005 2006 2007
Operating cash flow before the change in working capital $ 3,121.9 $ 2,677.5 $ 2,520.6 $ 2,963.1
Common dividends paid $ 742.8 $ 800.8 $ 871.6 $ 932.4
Per share (in dollars) $ 0.93 $ 1.03 $ 1.13 $ 1.25
Earnings before interest, income taxes, depreciation
and amortization (EBITDA)(1) $ 4,997.4 $ 4,419.0 $ 4,672.5 $ 4,989.9
Return on shareholders equity 83.3% 61.2% 51.6% 59.7%
Return on capital employed(2) 18.4% 14.7% 15.6% 16.6%
Total assets $ 16,173.4 $ 16,555.0 $ 16,377.2 $ 17,155.0
Debt $ 8,278.6 $ 7,972.1 $ 7,653.5 $ 9,140.3
Capital expenditures $ 1,089.6 $ 1,136.7 $ 812.5 $ 870.0
Depreciation and amortization $ 932.7 $ 979.0 $ 988.7 $ 996.2
Number of full-time employees 31,435 31,485 30,183 30,849
Number of registered common shareholders 54,654 53,573 51,888 49,732
Closing stock price $ 50.7 $ 43.0 $ 49.2 $ 52.3
(1) EBITDA is calculated as pretax income plus depreciation and amortization expense, plus net interest cost (interest expense less capitalized
interest), plus equity income on a pretax basis (equity income divided by the reciprocal of the effective tax rate).
(2) Return on capital employed is computed as net income before after-tax interest expense divided by average net investment. Net investment is
defined as total assets less nondebt current liabilities.
U.S. International
2007 Beer Beer Packaging Entertainment
Sales / TA
Net Y / TA
Exhibit 2 (continued)
THIS BUD’S FOR WHO? THE BATTLE FOR ANHEUSER-BUSCH
Selected Financial Information for Anheuser-Busch, 2007–2009
Sales (millions)
Note: Figures above do not provide for income taxes or capital expenditures. Sales are expressed in dollars and euros, respectively.
Data sources: Anheuser-Busch annual report, 2007; and case writer estimates.
Exhibit 3
THIS BUD’S FOR WHO? THE BATTLE FOR ANHEUSER-BUSCH
Anheuser-Busch Adjusted Stock Price, 1998–2008
Year ended Dec. 31 (in millions, except where noted) 2007A 2008E 2009P 2010P 2011P 2012P
Diluted earnings per share $2.79 $3.10 $3.55 $3.87 $4.22 $4.55
Diluted weighted average shares outstanding 757 725 725 725 725 725
(1) Pretax equity income is calculated as equity income divided by the reciprocal of the tax rate. This income is related to AB’s investment
in Grupo Modelo and should be added back to AB’s stand-alone free cash flow for valuation purposes.
Note: Analysts estimated WACC at 8.4% (William Pecoriello and Brett Cooper, “Anheuser-Busech Cos,” Morgan Stanley, June 27, 2008, 3.)
Data sources: Anheuser-Busch annual reports, 2006–2007, and case writer estimates.
Exhibit 5
THIS BUD’S FOR WHO? THE BATTLE FOR ANHEUSER-BUSCH
Selected Exchange Rates, 2003–2008
Data source: OANDA Historical Exchange Rates, http://www.oanda.com/currency/historical-rates (accessed Jul. 8, 2013).
Title
D/EUR
Ap Ju Oc Ja Ap Ju Oc Ja
l n l n
1, r. 1 . 1, t. 1, . 1, r. 1 . 1, t. 1, . 1,
, 2
2 2 0 2 2 2 0 2 2 , 2
0 5 0 0 6 0 0 6 0 6 0 0 6 0 0 7 0 0 7 07 0 0 7 0 0 8
– –
ep –De –Ma –Ju Sep –De –Ma –Ju Sep –De –Ma
. 3 c. r. n. . 3 c. r. n. . 3 c. r.
0 , 0 , 2 31 , 3 1 , 3 0 , 0 , 2 3 1 , 3 1 , 3 0 , 0 , 2 3 1 , 3 1 ,
2 0 2 2 2 0 2 2 2 0 2 2
05 00 5 05 005 0 06 0 06 06 00 6 0 07 0 07 07 0 07 0 08
2002 1.6%
2003 2.3%
2004 2.7%
2005 3.4%
2006 3.2%
2007 2.8%
Data sources: U.S. Treasury Department, European Central Bank, and U.S. Inflation Calculator.
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