HOMEWORK
Find the balance sheet and income statement for SamDee Inc., a large US entertainment firm.
In addition to these financial statements, you are given the following information. SamDee's cost of equity is 12% and its cost of debt is 9% (on a pre-tax basis). The weight of equity in the capital structure is 70.02% and the weight of debt in the capital structure is 29.98%.
Answer the following questions:
(a) What is SamDee's NOPAT in 2016?
(b) What is SamDee's total operating capital in 2016? In 2015?
(c) What is SamDee's investment in operating capital in 2016?
(d) What is SamDee's free cash flow (to the firm) in 2016?
(e) What is SamDee's cost of capital?
(f) Assuming that this cash flow will grow at a constant rate of 5% forever, what is SamDee's total enterprise value?
(g) What is SamDee's firm value?
(h) What is SamDee's equity value per share, if there are 10 million shares outstanding?
SamDee's Balance Sheet (in USD '1,000s)
|
Assets
|
2014
|
2015
|
2016
|
|
Operating Current Assets
|
243,000
|
252,000
|
264,600
|
|
Total Current Assets
|
243,000
|
252,000
|
264,600
|
|
Net PPE
|
298,500
|
315,063
|
330,750
|
|
Total Assets
|
541,500
|
567,063
|
595,350
|
|
Liabilities and Shareholders' Equity
|
|
|
|
|
Operating Current Liabilities
|
86,867.25
|
94,496.55
|
99,225
|
|
Total Current Liabilities
|
86,867.25
|
94,496.55
|
99,225
|
|
Long Term Debt
|
204,379.5
|
214,591.5
|
225,321.1
|
|
Total Liabilities
Common Stock
Retained Earnings
|
291,246.8
75,000
175,253.3
|
309,088.1
74,957.97
183,017
|
324,546.1
74,957.97
195,846
|
|
Total Common Equity
|
250,253.3
|
257,975
|
270,803.9
|
|
Total Liabilities and Equity
|
541,500
|
567,063
|
595,350
|
SamDee'sIncome Statement (in USD '1,000s)
|
2014
|
2015
|
2016
|
|
Sales
|
600,000
|
630,000
|
661,500
|
|
Cost of Goods Sold
|
336,000
|
353,526.9
|
366,163.4
|
|
SGA
|
150,000
|
157,824.5
|
163,465.8
|
|
Depreciation
|
30,000
|
31,564.9
|
32,693.16
|
|
Operating Profit
|
84,000
|
87,083.7
|
99,177.6
|
|
Interest Expense
|
17,518.35
|
18,394.16
|
19,313.24
|
|
Earnings Before Taxes
|
66,481.65
|
68,689.55
|
79,864.37
|
|
Taxes
|
26,592.66
|
27,475.82
|
31,945.75
|
|
Net Income
|
39,888.99
|
41,213.73
|
47,918.62
|
|
|
|
|
|
Dividends
|
31,800
|
33,450
|
35,089.64
|