Here's your chance to shine as a financial analyst. Using your in-depth knowledge of your industry, identify a potential takeover target. Although this assignment focuses on the financial aspects of a takeover, you may want to include synergies between your company and the target in your calculation. You will not be able to take over the company in the simulation, but the exercise will give you practice identifying firms that are candidates for a takeover. 1. Calculate or estimate the following for each firm in the industry Market Firm Enterprise Value Enterprise Value Earnings Ratio Capitalization (P/E) (EV) to Sales Ratio (EV/Sales) Price to Cash Flow 1 N 2 3 4 5 6 7 00 8 9 9 10 11 12 ctivate Window to Settings to activate Wind 2. Which competitor would you target for a takeover? Provide a brief rationale for your takeover decision based on the measures you calculated and any other considerations you used. 3. What would you expect the cost of the takeover to be? How would you finance it? To complete the assignment you will need to use the following calculations: Shares Outstanding = Net Income / Earnings per Share Market Capitalization - Stock Price x Shares Outstanding Price/Earnings Ratio = Stock Price / Earnings per Share Enterprise Value = Market Capitalization + Loan Balance Cash Balance Enterprise Value / Sales Ratio = Enterprise Value / Revenue Cash Flow = Current Cash Balance . . . Reliability 8 99 70 93 4 Company 3 Sindir Airlinesfal 6 Olin Airlines (b) 7 Lagle Airlines 1 Northern Airlineal Delta Airlines 10 Sonic Alines in 11 Aero Airlines 12 Moon Wing the 1) Indian Artine 14 Teaplanes ul 15 team dream 10 Success Airline 17 Cumulative Net Debt-to-Equity Profit (5) Quality 0.766 1449934 9.146 -1.606293 0.616 366 6420737 2.12 5215184 10112 372896 0.57 1127300 3.016 2951949 93.113 2131824 0.37 72616 05 573680 -6.709 -285850 RRSKOR Passenger Load Seat () Productivity Stock Price (1 Turnover 90.5 4.4 26.5 926 42 + 24.57 29.5 5.4 28.35 91. 24 1.4 125 361 5.4 95.3 93 18 29.52 93 03 22.9 500 35 44 545 57 E7 15 1. 17.30 364 55 43 28 224 12.85 92 79 75 52 52 53 68 Cathalance Welchoed Score Aircraft USLIM IS ZA 530 102 2682412 2 2017 104 2450301 12 87.6 1406414 9 02 80 0 14.4 118 0 6 101 229272 74 M 100 2060020 9.2 ba 19013 141 105 61005 23.5 762 165729 14.5 296 99 5420082 14.1 99 14445 + 2178 si C01 101 ETOD 92017 OR 021 0.200 0000096 0 etest OO LEO 90- Cash Balance Earnings per Line of Credit N) (5) Loan Balance Current Ratio Cumulative Share (5) Return on (5) Return on 2692412 (5) Revenue 2.247 Net Profit (5 0.63 Assets 11800000 3018330 Equity Return on Sales Revenge 1 2450301 Mile 0.756 72476740 0.59 100329 0.011 0.005 1200000 99 7520050 1466414 4951610 2.719 0.86 0.01 0.112 2000060 0.000 50708359 129257 0.373 -2.73 0.021 0.04 3575609 0001 412120 5128646 118 0.265 1628159 -3.57 246550 0 6301621 5035509 710510 0.161 156 2292738 1.351 1.17 2800000 4311660 34457a 36729115 20302 0.034 1 LOG 0079 1866620 1,461 2558676 1.02 10200000 1939993 38300670 152405 0.005 0.05 38 29530 4189013 0.559 0.3 3300000 12644423 31465061 13100 0.008 0.052 60652 41405 0.212 -1.57 200000 11893573 64574317 315100 -0.023 3,468 0.04 99 945749 2.22 -0.4 3300000 1939993 13455353 -60721 0.013 2008 720654 1426001 2.965 8500000 1539993 3470585 35115 0.007 2011 25 699 144456 0.34 O 3723237 31755317 256700 0.193 0 0.46 7 TOT ( ) 0 0 STOO 0175 0313 601 1000 0215 66 0 STOD 02 0.150 Here's your chance to shine as a financial analyst. Using your in-depth knowledge of your industry, identify a potential takeover target. Although this assignment focuses on the financial aspects of a takeover, you may want to include synergies between your company and the target in your calculation. You will not be able to take over the company in the simulation, but the exercise will give you practice identifying firms that are candidates for a takeover. 1. Calculate or estimate the following for each firm in the industry Market Firm Enterprise Value Enterprise Value Earnings Ratio Capitalization (P/E) (EV) to Sales Ratio (EV/Sales) Price to Cash Flow 1 N 2 3 4 5 6 7 00 8 9 9 10 11 12 ctivate Window to Settings to activate Wind 2. Which competitor would you target for a takeover? Provide a brief rationale for your takeover decision based on the measures you calculated and any other considerations you used. 3. What would you expect the cost of the takeover to be? How would you finance it? To complete the assignment you will need to use the following calculations: Shares Outstanding = Net Income / Earnings per Share Market Capitalization - Stock Price x Shares Outstanding Price/Earnings Ratio = Stock Price / Earnings per Share Enterprise Value = Market Capitalization + Loan Balance Cash Balance Enterprise Value / Sales Ratio = Enterprise Value / Revenue Cash Flow = Current Cash Balance . . . Reliability 8 99 70 93 4 Company 3 Sindir Airlinesfal 6 Olin Airlines (b) 7 Lagle Airlines 1 Northern Airlineal Delta Airlines 10 Sonic Alines in 11 Aero Airlines 12 Moon Wing the 1) Indian Artine 14 Teaplanes ul 15 team dream 10 Success Airline 17 Cumulative Net Debt-to-Equity Profit (5) Quality 0.766 1449934 9.146 -1.606293 0.616 366 6420737 2.12 5215184 10112 372896 0.57 1127300 3.016 2951949 93.113 2131824 0.37 72616 05 573680 -6.709 -285850 RRSKOR Passenger Load Seat () Productivity Stock Price (1 Turnover 90.5 4.4 26.5 926 42 + 24.57 29.5 5.4 28.35 91. 24 1.4 125 361 5.4 95.3 93 18 29.52 93 03 22.9 500 35 44 545 57 E7 15 1. 17.30 364 55 43 28 224 12.85 92 79 75 52 52 53 68 Cathalance Welchoed Score Aircraft USLIM IS ZA 530 102 2682412 2 2017 104 2450301 12 87.6 1406414 9 02 80 0 14.4 118 0 6 101 229272 74 M 100 2060020 9.2 ba 19013 141 105 61005 23.5 762 165729 14.5 296 99 5420082 14.1 99 14445 + 2178 si C01 101 ETOD 92017 OR 021 0.200 0000096 0 etest OO LEO 90- Cash Balance Earnings per Line of Credit N) (5) Loan Balance Current Ratio Cumulative Share (5) Return on (5) Return on 2692412 (5) Revenue 2.247 Net Profit (5 0.63 Assets 11800000 3018330 Equity Return on Sales Revenge 1 2450301 Mile 0.756 72476740 0.59 100329 0.011 0.005 1200000 99 7520050 1466414 4951610 2.719 0.86 0.01 0.112 2000060 0.000 50708359 129257 0.373 -2.73 0.021 0.04 3575609 0001 412120 5128646 118 0.265 1628159 -3.57 246550 0 6301621 5035509 710510 0.161 156 2292738 1.351 1.17 2800000 4311660 34457a 36729115 20302 0.034 1 LOG 0079 1866620 1,461 2558676 1.02 10200000 1939993 38300670 152405 0.005 0.05 38 29530 4189013 0.559 0.3 3300000 12644423 31465061 13100 0.008 0.052 60652 41405 0.212 -1.57 200000 11893573 64574317 315100 -0.023 3,468 0.04 99 945749 2.22 -0.4 3300000 1939993 13455353 -60721 0.013 2008 720654 1426001 2.965 8500000 1539993 3470585 35115 0.007 2011 25 699 144456 0.34 O 3723237 31755317 256700 0.193 0 0.46 7 TOT ( ) 0 0 STOO 0175 0313 601 1000 0215 66 0 STOD 02 0.150