You are given the following Income Statements and Balance Sheet for the Horizon Company Given these, find the Dividend Discount Model Fair Value for each year Income Statement Name 2014 2015 2016 2017 2018 TTM Gross Profit 77,148 79,063 74,556 74,478 75,355 76,754 Total Revenue 127,079 131,620 125,980 126,034 130,863 131,087 Cost of Revenue 49,931 52,557 51,424 51,556 55,508 54,333 Operating Income Expenses 57,549 46,003 47,497 45,290 48,486 48,292 Selling, General and Administrative Expenses 41,016 29,986 31,569 28,336 31,083 31,100 Depreciation, Amortization and Depletion 16,533 16,017 15,928 16,954 17,403 17,192 Total Operating Profit Loss 19,599 33,060 27,059 29,188 26,869 28,462 Non Operating Income Expenses, Total 4,329 4,820 6,073 8,594 7,246 8,322 Pretax Income 15,270 28,240 20,986 20,594 19,623 20,140 Provision for Income Tax 3,314 9,865 7,378 9,956 3,584 3,779 Net Income from Continuing Operations 11,956 18,375 13,608 30,550 16,039 16,361 Net Income after Extraordinary Items and Discontinued Operations 11,956 18,375 13,608 30,550 16,039 16,361 Non Controlling Minority Interests 2,331 496 481 449 511 522 Net Income after Non Controlling Minority Interests 9,625 17,879 13,127 30,101 15,528 15,839 Net Income Available to Common Stockholders 9,625 17,879 13,127 30,101 15,528 15,839 Diluted Net Income Available to Common Stockholders 9,625 17,879 13,127 30,101 15,528 15,839 Reported Total Revenue 127,079 131,620 125,980 126,034 130,863 131,087 Reported Operating Expense 107,480 98,560 98,921 98,620 108,585 107,216 Reported Total Operating Profit Loss 19,599 33,060 27,059 27,414 22,278 23,871 Reported Normalized EBITDA 43,254 46,567 44,100 0 0 36,204 Fiscal year ends in Dec 31 USD Balance Sheet Name 2014 2015 2016 2017 2018 Total Assets 232,708 244,640 244,180 257,143 264,829 Total Liabilities 219,032 226,798 220,148 212,456 210,119 Total Equity 13,676 17,842 24,032 44,687 54,710 Equity Attributable to Parent Stockholders 12,298 16,428 22,524 43,096 53,145 Paid in Capital 8,316 4,204 4,343 4,386 6,880 Capital Stock 11,579 11,620 11,606 11,525 13,866 Common Stock 424 424 424 424 429 Common Stock, with Par Value 424 424 424 424 429 Preferred Stock 0 0 0 0 0 Additional Paid in Capital Share Premium 11,155 11,196 11,182 11,101 13,437 Treasury Stock 3,263 7,416 7,263 7,139 6,986 Stock Options Warrants DeferredShares ConvertibleDebentures 424 428 449 416 353 Retained Earnings Accumulated Deficit 2,447 11,246 15,059 35,635 43,542 Reserves Accumulated Comprehensive Income Losses 1,111 550 2,673 2,659 2,370 Non Controlling Minority Interests 1,378 1,414 1,508 1,591 1,565 Common Shares Issued 4,155 4,073 4,077 4,079 4,132 Common Shares Outstanding 4,155 4,073 4,077 4,079 4,132 Common Shares Treasury 87 169 166 163 159

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 09, 2024

You are given the following Income Statements and Balance Sheet for the Horizon Company. Given these, find the Dividend Discount Model Fair Value for each

You are given the following Income Statements and Balance Sheet for the Horizon Company. Given these, find the Dividend Discount Model Fair Value for each year

Income Statement
Name	2014	2015	2016	2017	2018	TTM
Gross Profit	77,148	79,063	74,556	74,478	75,355	76,754
Total Revenue	127,079	131,620	125,980	126,034	130,863	131,087
Cost of Revenue	-49,931	-52,557	-51,424	-51,556	-55,508	-54,333
Operating Income/Expenses	-57,549	-46,003	-47,497	-45,290	-48,486	-48,292
Selling, General and Administrative Expenses	-41,016	-29,986	-31,569	-28,336	-31,083	-31,100
Depreciation, Amortization and Depletion	-16,533	-16,017	-15,928	-16,954	-17,403	-17,192
Total Operating Profit/Loss	19,599	33,060	27,059	29,188	26,869	28,462
Non-Operating Income/Expenses, Total	-4,329	-4,820	-6,073	-8,594	-7,246	-8,322
Pretax Income	15,270	28,240	20,986	20,594	19,623	20,140
Provision for Income Tax	-3,314	-9,865	-7,378	9,956	-3,584	-3,779
Net Income from Continuing Operations	11,956	18,375	13,608	30,550	16,039	16,361
Net Income after Extraordinary Items and Discontinued Operations	11,956	18,375	13,608	30,550	16,039	16,361
Non-Controlling/Minority Interests	-2,331	-496	-481	-449	-511	-522
Net Income after Non-Controlling/Minority Interests	9,625	17,879	13,127	30,101	15,528	15,839
Net Income Available to Common Stockholders	9,625	17,879	13,127	30,101	15,528	15,839
Diluted Net Income Available to Common Stockholders	9,625	17,879	13,127	30,101	15,528	15,839
Reported Total Revenue	127,079	131,620	125,980	126,034	130,863	131,087
Reported Operating Expense	-107,480	-98,560	-98,921	-98,620	-108,585	-107,216
Reported Total Operating Profit/Loss	19,599	33,060	27,059	27,414	22,278	23,871
Reported Normalized EBITDA	43,254	46,567	44,100	0	0	36,204
Fiscal year ends in Dec 31 \| USD

Balance Sheet
Name	2014	2015	2016	2017	2018
Total Assets	232,708	244,640	244,180	257,143	264,829
Total Liabilities	219,032	226,798	220,148	212,456	210,119
Total Equity	13,676	17,842	24,032	44,687	54,710
Equity Attributable to Parent Stockholders	12,298	16,428	22,524	43,096	53,145
Paid in Capital	8,316	4,204	4,343	4,386	6,880
Capital Stock	11,579	11,620	11,606	11,525	13,866
Common Stock	424	424	424	424	429
Common Stock, with Par Value	424	424	424	424	429
Preferred Stock	0	0	0	0	0
Additional Paid in Capital/Share Premium	11,155	11,196	11,182	11,101	13,437
Treasury Stock	-3,263	-7,416	-7,263	-7,139	-6,986
Stock Options/Warrants/DeferredShares/ConvertibleDebentures	424	428	449	416	353
Retained Earnings/Accumulated Deficit	2,447	11,246	15,059	35,635	43,542
Reserves/Accumulated Comprehensive Income/Losses	1,111	550	2,673	2,659	2,370
Non-Controlling/Minority Interests	1,378	1,414	1,508	1,591	1,565
Common Shares Issued	4,155	4,073	4,077	4,079	4,132
Common Shares Outstanding	4,155	4,073	4,077	4,079	4,132
Common Shares Treasury	87	169	166	163	159