Chapter 13 Problem 22 Recakulate the intrinsic value of Honda shares using the tree cash flow model of Spreadsheet 132. Treat each scenario independenty a. Honda's P/E ratio starting in 2012 will be 12.5. Honda's unlevered bata is 9. c. The market risk premium is 8.5% Chapter 13 Problem 22 Student Name: Course Name: Student ID Course Number 2011 2012 1126 Use this copy of the Excel model in Chapter 13 and we each question below 2007 2008 2009 2010 A. Value Line data PIE 10.10 10.68 1184 Cap spending 3.45 3.50 367 LT Debt 19000.00 17500.00 1683333 Shares 1810.00 1800.00 1790.00 EPS 2.50 1.95 255 Working Capital 6920.00 5200.00 3038 39 8. Cash flow calculations Profits after tax) 35000 45700 Interest (after tax) 7011 6457 6211 Chg Working Cap -57200 8383 Depreciation 55000 56500 Cap Spending 6480.0 55620 12.42 3.73 16166.67 1780.00 3.15 6876.67 13.00 3.80 15500.00 1770.00 3.75 7715.00 45150 56400 5966 8383 5833.3 66440 67100 5719 8383 6000.0 67260 Terminal value 57176 80740 2 4479.0 682498 FCFF FCFE 48858 34403 21530 45875 33243 27400 70049 0.19 C. Discount rate calculations Current bota 1.05 Unlevered beta 0.845 terminal growth 0.03 tax_fate 0.385 debt 0.060 risk-free rate 0.04 market is prem 0.09 MV equity Debt Value Levered beta k_equly WACC PV factor for FCFF PV factor for FCFE D. Present values PVFCFF) PVFCFE) Answers 48220 0.28 1050 0.124 0.100 1.000 1.000 39410 0.31 1.076 0.120 0.0 0.910 54100 024 1007 0.121 0.101 0.827 0.792 0.965 0.117 0.102 0.750 0.709 87230 0.15 0937 0.115 0.103 0.680 0.635 0.115 0.103 0.680 0.636 0.885 ES 4446 2432 2845 1706 3442 2358 3889 2850 54919 43426 Intrinsic al 69540 52771 Intrinsie value: FCFF Intrinsic value per share: FCFF Intrinsic value FCFE Intrinsic value per share: FCFE Chapter 13 Problem 22 Recakulate the intrinsic value of Honda shares using the tree cash flow model of Spreadsheet 132. Treat each scenario independenty a. Honda's P/E ratio starting in 2012 will be 12.5. Honda's unlevered bata is 9. c. The market risk premium is 8.5% Chapter 13 Problem 22 Student Name: Course Name: Student ID Course Number 2011 2012 1126 Use this copy of the Excel model in Chapter 13 and we each question below 2007 2008 2009 2010 A. Value Line data PIE 10.10 10.68 1184 Cap spending 3.45 3.50 367 LT Debt 19000.00 17500.00 1683333 Shares 1810.00 1800.00 1790.00 EPS 2.50 1.95 255 Working Capital 6920.00 5200.00 3038 39 8. Cash flow calculations Profits after tax) 35000 45700 Interest (after tax) 7011 6457 6211 Chg Working Cap -57200 8383 Depreciation 55000 56500 Cap Spending 6480.0 55620 12.42 3.73 16166.67 1780.00 3.15 6876.67 13.00 3.80 15500.00 1770.00 3.75 7715.00 45150 56400 5966 8383 5833.3 66440 67100 5719 8383 6000.0 67260 Terminal value 57176 80740 2 4479.0 682498 FCFF FCFE 48858 34403 21530 45875 33243 27400 70049 0.19 C. Discount rate calculations Current bota 1.05 Unlevered beta 0.845 terminal growth 0.03 tax_fate 0.385 debt 0.060 risk-free rate 0.04 market is prem 0.09 MV equity Debt Value Levered beta k_equly WACC PV factor for FCFF PV factor for FCFE D. Present values PVFCFF) PVFCFE) Answers 48220 0.28 1050 0.124 0.100 1.000 1.000 39410 0.31 1.076 0.120 0.0 0.910 54100 024 1007 0.121 0.101 0.827 0.792 0.965 0.117 0.102 0.750 0.709 87230 0.15 0937 0.115 0.103 0.680 0.635 0.115 0.103 0.680 0.636 0.885 ES 4446 2432 2845 1706 3442 2358 3889 2850 54919 43426 Intrinsic al 69540 52771 Intrinsie value: FCFF Intrinsic value per share: FCFF Intrinsic value FCFE Intrinsic value per share: FCFE