Company Badger Meter (BMI) Gorman-Rupp (GRC) Franklin Electric (FELE) Mueller Water Products Circor International Stock Price 45.78 31.28 45.42 12.35 46.02 Book Value of Earnings per Equity per share (ttm) share (ttm) 1. 159 .42 0.91 | 12.22 1.85 14.99 -0.77 3.08 0.92 27.39 36. You are using the market method to value Circor International using Price to Book Value of Equity multiple. Given the table of information below, what is the appropriate valuation of Circor shares using the Price/Book multiple? a. $38.96 b. $45.42 c. $47.47 d. $49.39 $49.13 37. You are using the market method to value Circor International using Price to Eamings multiple. Given the table of information above, what is the appropriate valuation of Circor shares using the Price/Earnings multiple? a. $19.02 b. $28.82 c. $30.28 d. $30.37 e. $46.02 38. Use the information in the table above to compute the current the Price/Earnings multiple for Circor International Compute the Cap Rate for Circor based upon the computed P/E multiple. The correct answer is: a. 19.99% b. 2.42% c. 14.07% d. 2.00% e. 45.42% 39. Assume that a company has a P/E multiple equal to 18. If the long term geometric growth rate in eamings is assumed to be 2.8%, what is the estimated cost of equity for the firm? a. b. c. d. e. 2.76% 4.34% 8.36% 9.94% 16.80% 27. Use the following information to value Badger-Meter Corp. using the discounted free cash flow. The observed share price on December 1, 2017 was $45.75 per share. Assume the most recent 10-k was dated November 30, 2017. WACC (after-tax) is 8% and the estimated cost of equity is 11% for Badger Meter. All dollar amount items are stated in thousands of dollars. Shares of Common Stock outstanding in thousands) is 28,820 The Terminal Value perpetuity begins in 2021 and dividends are assumed to grow at 3.8% annually. Badger Meter (45.75) 2017 2018 364,768 Forecast 2019 377,698 Perp 2020 2021 393,761 Total Revenue Net Income 29,678 25,938 32,295 Interest Bearing Debt 86,205 91,986 90,515 56,300 Retained Earnings 170,320.00 Total Stockholder Equity 196,560.00 Total Cash Flow From Operating Activities 35,735 35,831 56,185 61,240 Capital Expenditures (12,332) 10,633 (19,766) 11,261 (10,596) (15,400) 12,461 14,600 Dividends Paid a. $30.83 per share b. $33.82 per share C. $41.28 per share d. $28.22 per share Company Badger Meter (BMI) Gorman-Rupp (GRC) Franklin Electric (FELE) Mueller Water Products Circor International Stock Price 45.78 31.28 45.42 12.35 46.02 Book Value of Earnings per Equity per share (ttm) share (ttm) 1. 159 .42 0.91 | 12.22 1.85 14.99 -0.77 3.08 0.92 27.39 36. You are using the market method to value Circor International using Price to Book Value of Equity multiple. Given the table of information below, what is the appropriate valuation of Circor shares using the Price/Book multiple? a. $38.96 b. $45.42 c. $47.47 d. $49.39 $49.13 37. You are using the market method to value Circor International using Price to Eamings multiple. Given the table of information above, what is the appropriate valuation of Circor shares using the Price/Earnings multiple? a. $19.02 b. $28.82 c. $30.28 d. $30.37 e. $46.02 38. Use the information in the table above to compute the current the Price/Earnings multiple for Circor International Compute the Cap Rate for Circor based upon the computed P/E multiple. The correct answer is: a. 19.99% b. 2.42% c. 14.07% d. 2.00% e. 45.42% 39. Assume that a company has a P/E multiple equal to 18. If the long term geometric growth rate in eamings is assumed to be 2.8%, what is the estimated cost of equity for the firm? a. b. c. d. e. 2.76% 4.34% 8.36% 9.94% 16.80% 27. Use the following information to value Badger-Meter Corp. using the discounted free cash flow. The observed share price on December 1, 2017 was $45.75 per share. Assume the most recent 10-k was dated November 30, 2017. WACC (after-tax) is 8% and the estimated cost of equity is 11% for Badger Meter. All dollar amount items are stated in thousands of dollars. Shares of Common Stock outstanding in thousands) is 28,820 The Terminal Value perpetuity begins in 2021 and dividends are assumed to grow at 3.8% annually. Badger Meter (45.75) 2017 2018 364,768 Forecast 2019 377,698 Perp 2020 2021 393,761 Total Revenue Net Income 29,678 25,938 32,295 Interest Bearing Debt 86,205 91,986 90,515 56,300 Retained Earnings 170,320.00 Total Stockholder Equity 196,560.00 Total Cash Flow From Operating Activities 35,735 35,831 56,185 61,240 Capital Expenditures (12,332) 10,633 (19,766) 11,261 (10,596) (15,400) 12,461 14,600 Dividends Paid a. $30.83 per share b. $33.82 per share C. $41.28 per share d. $28.22 per share
