Chapter 13 Problem 22 Recakulato the intrinsic value of Honda shares using the tree cash low modet of Spreadsheet 132 Treet each scenario independent a. Honda's PE ratio starting in 2012 will be 12.5. Honda's unlevered bota is 9. c. The market risk premium is 8.5% Chapter 13 Problem 22 Student Name: Course Name: Studenti Course Number 2011 2012 Use this copy of the Excel model in Chapter 13 and wachustion below 2007 2008 2009 2010 A. Value Line data PE 10.10 10.63 11.26 1184 Cap spendings 3.45 3.50 3.67 LT Debt 19000.00 17500.00 16833.33 Shares 1810.00 1800.00 1790.00 EPS 250 1.95 255 Working Capital 6920.00 5200.00 3038.39 12.42 3.73 16166.67 1780.00 3.15 5876.67 13.00 3.80 15500.00 1770.00 375 7715.00 45150 7011 B. Cash flow calculations Profits after tax) Interest (after tax) Chg Working Cap Depreciation Cap Spending 35000 6457 - 17200 55000 54800 45700 621.1 3383 56500 55620 5640.0 5966 8383 5833.3 66440 67100 5719 8383 6000.0 67260 Terminal value 57176 80740 2 44790 682498 FCFF FCFE 48858 27400 340 21530 45875 33243 debe 30410 70049 0.19 C. Discount rate calculations Current bota 1.05 Unlevered beta 0.845 terminal growth 0.03 tax_fate 0385 0.060 risk-free rate 0.04 market risk prem 0.09 MV equity Debt Value Levered beta k_equity 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 0 31 1076 0.120 0.099 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 0.937 0.115 0.103 0.680 0.635 0.115 0.103 0.680 0.636 0.888 ES 4446 2432 2845 1706 3442 2358 3889 2850 54919 43426 Intrinsie va 69540 52771 Intrinsic value: FCFF Intrinsic value per share FCFF Intrinsic value FCFE Intrinsic value per share: FCFE Chapter 13 Problem 22 Recakulato the intrinsic value of Honda shares using the tree cash low modet of Spreadsheet 132 Treet each scenario independent a. Honda's PE ratio starting in 2012 will be 12.5. Honda's unlevered bota is 9. c. The market risk premium is 8.5% Chapter 13 Problem 22 Student Name: Course Name: Studenti Course Number 2011 2012 Use this copy of the Excel model in Chapter 13 and wachustion below 2007 2008 2009 2010 A. Value Line data PE 10.10 10.63 11.26 1184 Cap spendings 3.45 3.50 3.67 LT Debt 19000.00 17500.00 16833.33 Shares 1810.00 1800.00 1790.00 EPS 250 1.95 255 Working Capital 6920.00 5200.00 3038.39 12.42 3.73 16166.67 1780.00 3.15 5876.67 13.00 3.80 15500.00 1770.00 375 7715.00 45150 7011 B. Cash flow calculations Profits after tax) Interest (after tax) Chg Working Cap Depreciation Cap Spending 35000 6457 - 17200 55000 54800 45700 621.1 3383 56500 55620 5640.0 5966 8383 5833.3 66440 67100 5719 8383 6000.0 67260 Terminal value 57176 80740 2 44790 682498 FCFF FCFE 48858 27400 340 21530 45875 33243 debe 30410 70049 0.19 C. Discount rate calculations Current bota 1.05 Unlevered beta 0.845 terminal growth 0.03 tax_fate 0385 0.060 risk-free rate 0.04 market risk prem 0.09 MV equity Debt Value Levered beta k_equity 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 0 31 1076 0.120 0.099 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 0.937 0.115 0.103 0.680 0.635 0.115 0.103 0.680 0.636 0.888 ES 4446 2432 2845 1706 3442 2358 3889 2850 54919 43426 Intrinsie va 69540 52771 Intrinsic value: FCFF Intrinsic value per share FCFF Intrinsic value FCFE Intrinsic value per share: FCFE