[go: up one dir, main page]
Scribd
Upload
251 views3 pages

Acctg. 9 Prefi Quiz 1 Key

This document shows financial information for a company from 2017-2019, including volume, revenues, costs of goods sold, operating expenses, and operating income. It then provides projections for 2020-2025, calculating net income, cash flows, enterprise value, and equity value. The key metrics are: - Compounded annual growth rate for revenues from 2017-2019 was 10% - Projected net income for 2021-2025 totals $4,407,625 - Projected net cash flows from 2021-2025 totals $4,257,888 - Calculated enterprise value of the company in 2025 is $16,501,139

Uploaded by

Rica Catangui
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
251 views3 pages

Acctg. 9 Prefi Quiz 1 Key

This document shows financial information for a company from 2017-2019, including volume, revenues, costs of goods sold, operating expenses, and operating income. It then provides projections for 2020-2025, calculating net income, cash flows, enterprise value, and equity value. The key metrics are: - Compounded annual growth rate for revenues from 2017-2019 was 10% - Projected net income for 2021-2025 totals $4,407,625 - Projected net cash flows from 2021-2025 totals $4,257,888 - Calculated enterprise value of the company in 2025 is $16,501,139

Uploaded by

Rica Catangui
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 3

2017 2018 2019

Volume 1,000,000 1,100,000 1,210,000


Revenues 5,000,000 5,500,000 6,050,000
Cost of goods sold:
·        Variable 1,500,000 1,650,000 1,815,000
·        Fixed 1,500,000 1,500,000 1,500,000
Gross profit 2,000,000 2,350,000 2,735,000
Operating expenses:
·        Variable 500,000 550,000 605,000
·        Fixed 400,000 400,000 400,000
Operating income 1,100,000 1,400,000 1,730,000
30% 30% 30%
10% 10% 10%
Required:
1.      What is the compounded annual growth rate for revenues for 2017 to 2020?
2.      What is the compounded annual growth rate for revenues for 2017 to 2019?
3.      What is the growth rate that will be used in the forecast preparation?
4.      What is the projected net income for 2021 to 2025?
5.      What is the net cash flows from 2021 to 2025?
6.      what is the enterprise value of Cheesecake and Pearl Company?
7.      What is the equity value of Cheesecake and Pearl Company?

g = (FV/PV)^1/n-1)-1 x 100%
g = (3,025,000/5,000,000)^1/3-1x100%
g = -15.42%
2020 2021 2022 2023 2024
605,000
3,025,000 3,327,500 3,660,250 4,026,275 4,428,903

907,500 998,250 1,098,075 1,207,883 1,328,671


1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
617,500 829,250 1,062,175 1,318,393 1,600,232

302,500 332,750 366,025 402,628 442,890


400,000 400,000 400,000 400,000 400,000
-85,000 96,500 296,150 515,765 757,342
30%
10%
Taxes 24,125 74,038 128,941 189,335
COGS - depn 900,000 900,000 900,000 900,000
Opex - depn 120,000 120,000 120,000 120,000
Investment in CE 500,000 500,000 500,000 500,000
NET CASH FLOW 592,375 742,113 906,824 1,088,006
Equity Value 1,206,250 3,701,875 6,447,063 9,466,769
Net Debt 4,407,625 4,257,888 4,093,176 3,911,994
ENTERPRISE VALUE 5,613,875 7,959,763 10,540,239 13,378,763
EV = Future Earnings / Required return
3,025,000.00 Enterprise Value = Net debt + Equity Value
5,000,000.00
- 0.1542

6,050,000.00
5,000,000.00
0.1000
2025

4,871,793

1,461,538
1,500,000
1,910,255

487,179
400,000
1,023,076

255,769
900,000
120,000
500,000
1,287,307
12,788,446
3,712,693
16,501,139

You might also like