4. Estimating Cost of Capital (2 marks)
a. Compute the market value of all of the companys equity.
b. Compute the market value of the companys interest-bearing debt, using the interest expenses and weighted maturity of the debt, if need be. Compute the present value of lease and other contractual commitments that your company has contractually obligated itself to pay. Add the two values to estimate the market value of debt (which you will need to use for the levered beta computation in the earlier section)
c. Compute a debt to capital ratio, using the market values, and a cost of capital based on this ratio for both the company and its individual business units.
Sleep Number Corporation (SNBR) Corporate Overview Individuality is our foundatics at Sleep Numbet. Our propose drives company comprised of over 4.800 passionate team members who are dedicated to car mission of improving lives by individualizing sleep experience. Our 360 can beds provide cach sleeper with adjustable, personalised comfort for por quality sleep. We have improved more than 13 million tives we serve te shame society's wellbeing through higher quality sleep Sleep science and data are the core of our innovations. Our award-winning 360 sman beds benefit from our proprietary Sleepl" technology Learning from ever 9 billion hours of highly accurate sleep date to provide effortless comfort individualized sleep health insights, including your daily Sleeplsce For life changing sleep. visit Sleep Number.com or one of our more than 600 Sleep Number store www.sleepaumber.com SNBR Sales vs. its Competitors Q1 2021 Comparing the results to its competitors, Sleep Number reported Total Revenue increase in the quarter 2021 by 2025 year on year The sales growth was above Sleep Number's competitor's average rover the of 53% recorded in the same quarter. With set margin of 1173 cm achieved higher profitability than its competitors COMPANY NAME INC. SEO Sleep Number Corporate Bed Bath and send te Big Line +3.49% Last Plastic ..15.21's Sealy International Inc.2.6% Dillard Inc 136.5" La boy lacar perated ..16.19% Hondac Nova Lifestyle Inc APROX. MARKET 4352% Monthly Sock Price and Return (9/2015 - 5/2021) Date CM 1-May-21 TTD Tar Tab BI 1- 100 -Sep HAU 1-Jul- 1- 1-25 1-Apr-20 BULDU 1024 SMS WR 05 #T 13 18. RE CO 365 RIO 034 302 1422 131543955 35905 116 33 -0.005 HIS 321273 09 BUS CAT CS 035T 31111 COM 3 3313 -30 TOY 31 CR 103057 300 011 OT SE7 EU 31910 FILTEMET TINTI RE ROUTES 39595 RI 31.07 1951 12.16 05 IRATE T-Man-18 1-766-16 11 FAMILY WY 20 2015 2372 F FOTOS TORTY THIS TOT CRYS FOTOS WHICH TOTUL FIT THAT T- OS TS 12 Some Ratios (2020) PE:20.12 Eps 59 Bet 15 years Mewt 1.99 Risk free rate and Equity risk premium KEP1/2012004974974 Minneapolis Bonds yield 50% Equity Risk Premium 4.97 -0.507 449% Relative Risk Regression Coefficient standardired Koefficient Model Sad. Em Costant 037 1020 R 02 323 a. Dependent Vare: Re Standardired Coefficients Beta 11 Intercept -0.007 (This value represents the security teretur in excess of the risk-free which cannot be coted for by that makes moun when the change in Reisen, if there was change in the company will make some retum Slepe 002 The slope of the repression is the security's steak which masures the correlated variability of the specific price from when compared to that of the markets a whole noorts see the relatie between the stock returns and the market returns weak positive to the company performance is work becsm increases by I. Rewelyophy about units) Range: 13.75-22941 12:58 that RE ME SORT LAT US KA ISTERI TOSTI VEST FEE NE STO RT EINE TERE DED LOU TNS 29 CE NO TI WI he 13 -- Tep TRE ! REPAIR RECE w S.SI CES COS FE ISOTES LE TE FETY WIT nie 100 TOTU C . . an re LICHE SY 28 TRER GE - B WT 4.14 TY LAP from mars TTT -20 ele T. 19 up 19 NI CE ta 4011 LE SIRET HALL TIES! pet = TES TO w CAT 10 fare TEXT INT IBITS 12 BRE CT 1. SANTE SI Tris ALT 204 ITE! HALIE SERGEI win HITS 1-Sep-1 ERSEI 40130 T! PER RIS LISTE BIRSE ROSE HET IN Apr UT NE 2033199 ESTET LITE HERE ISTS 4 IT 1964 18010 VE 20 16 LU 300T SH GREEN THE F 0.00 tu 1774 RIT OS LON TE 100 Lang TEN 1. TER 333 CEL LEAP 1-Star-17 BAY RES 0216CT 28 ALTI TET RI 0.18 wy 113 LI la 1 Lupo FAN TIR 26 1150 SER EW HU 134 Lp 07 Fels L-15 IN Wheels F ALE SIE ETICO 136 1140 MR ITIE THR! Dp-15 04 BER Sleep Number Corporation (SNBR) Corporate Overview Individuality is our foundatics at Sleep Numbet. Our propose drives company comprised of over 4.800 passionate team members who are dedicated to car mission of improving lives by individualizing sleep experience. Our 360 can beds provide cach sleeper with adjustable, personalised comfort for por quality sleep. We have improved more than 13 million tives we serve te shame society's wellbeing through higher quality sleep Sleep science and data are the core of our innovations. Our award-winning 360 sman beds benefit from our proprietary Sleepl" technology Learning from ever 9 billion hours of highly accurate sleep date to provide effortless comfort individualized sleep health insights, including your daily Sleeplsce For life changing sleep. visit Sleep Number.com or one of our more than 600 Sleep Number store www.sleepaumber.com SNBR Sales vs. its Competitors Q1 2021 Comparing the results to its competitors, Sleep Number reported Total Revenue increase in the quarter 2021 by 2025 year on year The sales growth was above Sleep Number's competitor's average rover the of 53% recorded in the same quarter. With set margin of 1173 cm achieved higher profitability than its competitors COMPANY NAME INC. SEO Sleep Number Corporate Bed Bath and send te Big Line +3.49% Last Plastic ..15.21's Sealy International Inc.2.6% Dillard Inc 136.5" La boy lacar perated ..16.19% Hondac Nova Lifestyle Inc APROX. MARKET 4352% Monthly Sock Price and Return (9/2015 - 5/2021) Date CM 1-May-21 TTD Tar Tab BI 1- 100 -Sep HAU 1-Jul- 1- 1-25 1-Apr-20 BULDU 1024 SMS WR 05 #T 13 18. RE CO 365 RIO 034 302 1422 131543955 35905 116 33 -0.005 HIS 321273 09 BUS CAT CS 035T 31111 COM 3 3313 -30 TOY 31 CR 103057 300 011 OT SE7 EU 31910 FILTEMET TINTI RE ROUTES 39595 RI 31.07 1951 12.16 05 IRATE T-Man-18 1-766-16 11 FAMILY WY 20 2015 2372 F FOTOS TORTY THIS TOT CRYS FOTOS WHICH TOTUL FIT THAT T- OS TS 12 Some Ratios (2020) PE:20.12 Eps 59 Bet 15 years Mewt 1.99 Risk free rate and Equity risk premium KEP1/2012004974974 Minneapolis Bonds yield 50% Equity Risk Premium 4.97 -0.507 449% Relative Risk Regression Coefficient standardired Koefficient Model Sad. Em Costant 037 1020 R 02 323 a. Dependent Vare: Re Standardired Coefficients Beta 11 Intercept -0.007 (This value represents the security teretur in excess of the risk-free which cannot be coted for by that makes moun when the change in Reisen, if there was change in the company will make some retum Slepe 002 The slope of the repression is the security's steak which masures the correlated variability of the specific price from when compared to that of the markets a whole noorts see the relatie between the stock returns and the market returns weak positive to the company performance is work becsm increases by I. Rewelyophy about units) Range: 13.75-22941 12:58 that RE ME SORT LAT US KA ISTERI TOSTI VEST FEE NE STO RT EINE TERE DED LOU TNS 29 CE NO TI WI he 13 -- Tep TRE ! REPAIR RECE w S.SI CES COS FE ISOTES LE TE FETY WIT nie 100 TOTU C . . an re LICHE SY 28 TRER GE - B WT 4.14 TY LAP from mars TTT -20 ele T. 19 up 19 NI CE ta 4011 LE SIRET HALL TIES! pet = TES TO w CAT 10 fare TEXT INT IBITS 12 BRE CT 1. SANTE SI Tris ALT 204 ITE! HALIE SERGEI win HITS 1-Sep-1 ERSEI 40130 T! PER RIS LISTE BIRSE ROSE HET IN Apr UT NE 2033199 ESTET LITE HERE ISTS 4 IT 1964 18010 VE 20 16 LU 300T SH GREEN THE F 0.00 tu 1774 RIT OS LON TE 100 Lang TEN 1. TER 333 CEL LEAP 1-Star-17 BAY RES 0216CT 28 ALTI TET RI 0.18 wy 113 LI la 1 Lupo FAN TIR 26 1150 SER EW HU 134 Lp 07 Fels L-15 IN Wheels F ALE SIE ETICO 136 1140 MR ITIE THR! Dp-15 04 BER
