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Hi, I need help answering the following questions! Any help would be appreciated A Retail Company: Financial Data Year (smilllion) Year 0 (Actual) Year 1
Hi, I need help answering the following questions! Any help would be appreciated
A Retail Company: Financial Data Year (smilllion) Year 0 (Actual) Year 1 (Forecast) Year 2 (Forecast) Balance Sheet Assets Property, Plant and Equipment Inventory Debtors & Operating Cash Investments - Listed Shares Total Assets 400.00 70 00 15.00 485.00 415.00 95.00 15.00 525 OD 430.00 100 00 15.00 545.00 Funding Debt (Note. Trading at par) Capitalized Operating Lease Creditors Ordinary Equity Total Funding 180.00 30.00 110.00 165.00 485.00 172.59 38.00 125.00 189.41 525.00 183.44 50 00 100.00 211.56 545.00 Further Information Depreciation Tax Paid NOPLAT Operating Lease Expense 10.00 14.10 36.40 5.00 15.00 13.89 35.00 800 20 00 14.63 42.00 1000 130 million $4.09 1.18 6.4% Additional information: Number of issued shares Share price Equity Beta Equity Risk Premium Risk-Free Rate Proxy Company's borrowing cost Interest Rate on Operating Lease Tax rate Capital structure 3.096 6.5% 7096 30% Currently at long-term target Assumptions for Year 3 onwards. Growth of 4.0% (revenues, NOPLAT, FCF, etc) RONIC of 12.0% Simplifying conventions All cash flows occur as at year-end Tax rate of 30% applies to all income 9. What is ABC's cost of equity (to two decimal places)? 10. What is ABC's debt-to-equity ratio (to two decimal places)? 11. What is ABC's WACC (to two decimal places)? 12. What is the continuing value for ABC as at the end of Year 2 based on the KGW formula? 13. What is ABC's capital expenditure for Year 2? 14. What is ABC's change in working capital for Year 2? 15. Perform a DCF valuation of ABC. What is the resulting enterprise value of operations? 16. What is the equity valuation per share of ABC? A Retail Company: Financial Data Year (smilllion) Year 0 (Actual) Year 1 (Forecast) Year 2 (Forecast) Balance Sheet Assets Property, Plant and Equipment Inventory Debtors & Operating Cash Investments - Listed Shares Total Assets 400.00 70 00 15.00 485.00 415.00 95.00 15.00 525 OD 430.00 100 00 15.00 545.00 Funding Debt (Note. Trading at par) Capitalized Operating Lease Creditors Ordinary Equity Total Funding 180.00 30.00 110.00 165.00 485.00 172.59 38.00 125.00 189.41 525.00 183.44 50 00 100.00 211.56 545.00 Further Information Depreciation Tax Paid NOPLAT Operating Lease Expense 10.00 14.10 36.40 5.00 15.00 13.89 35.00 800 20 00 14.63 42.00 1000 130 million $4.09 1.18 6.4% Additional information: Number of issued shares Share price Equity Beta Equity Risk Premium Risk-Free Rate Proxy Company's borrowing cost Interest Rate on Operating Lease Tax rate Capital structure 3.096 6.5% 7096 30% Currently at long-term target Assumptions for Year 3 onwards. Growth of 4.0% (revenues, NOPLAT, FCF, etc) RONIC of 12.0% Simplifying conventions All cash flows occur as at year-end Tax rate of 30% applies to all income 9. What is ABC's cost of equity (to two decimal places)? 10. What is ABC's debt-to-equity ratio (to two decimal places)? 11. What is ABC's WACC (to two decimal places)? 12. What is the continuing value for ABC as at the end of Year 2 based on the KGW formula? 13. What is ABC's capital expenditure for Year 2? 14. What is ABC's change in working capital for Year 2? 15. Perform a DCF valuation of ABC. What is the resulting enterprise value of operations? 16. What is the equity valuation per share of ABCStep by Step Solution
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