Question
Cost of Capital wasnt given. I think you need to calculate WACC. DO you have an email or another way to send the competitor data
Cost of Capital wasnt given. I think you need to calculate WACC. DO you have an email or another way to send the competitor data it is a picture and the copy and past option is not working on the CHegg function?thank you
PLEASE SHOW IS A VERY CLEAR EXCEL DOC with formaulas showing.
Cool Shoes (CS) had 2014 sales of $518 million. You expect sales to grow at 9% next year (2015), but, decline by 1% per year after until you settle to a long-run growth rate of 4%. You expect EBIT to be 9% of sales, increases in net working capital requirements to be 10% of any increase in sales (hint: just the increase from the prior year), and net investment to be 8% of any increase in sales. (Note: this is in excess of depreciation). Other 2014 data for Cool Shoes:
EPS = $1.65
Book value of equity = $$12.05 per share
EBITDA = $55.6 million
Excess cash = $100 million
Debt = $3 million
Shares outstanding = 21 million
Requirements: Using the DCF method, determine the enterprise value of CS. (Hint: Dont forget the terminal value). Using the answer from part a), what is the price per share? Using the information from the comparable stock prices and multiples table above, estimate the price per share using the average P/E multiple. Using the information from the comparable stock prices and multiples table above, estimate the price per share using the average Enterprise Value to sales multiple. Using the information from the comparable stock prices and multiples table above, estimate the price per share using the average Enterprise Value to EBITDA multiple. What range of prices do you estimate based on your analysis in Reqs b-e? Summarize the Low, High, and Average. |
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