Beruflich Dokumente
Kultur Dokumente
Sales
SG&A
Food Costs
EBIT
Taxes (if no debt at 38%)
Actual
ForecasForecasForecasForecas
2017
2018
2019
2020
2021
1000.00 1100.00 1135.20 1171.53 1209.02
150.00 160.00 165.12 170.40 175.85
650.00 710.00 732.72 756.17 780.37
200.00 230.00 237.36 244.96 252.80
76.00
87.40
90.20
93.08
96.06
11.00
12.00
50.00
73.00
12.00
13.00
55.00
80.00
12.38
13.42
56.76
82.56
12.78
13.85
58.58
85.21
13.19
14.29
60.45
87.93
7.60
5.32
1.14
0.00
0.00
1070.00 1180.00 1217.76 1256.73 1296.95
1150.60 1265.32 1301.46 1341.94 1384.88
Accounts Payable
Wages payable
Def Revenue (gift card)
Current liablities
20.00
14.00
3.00
0.00
0.00
133.00 138.50 131.81 132.93 137.19
deferred revenue in working capital are prepaid gift cards for all merchandise at restaurant
Other long term liabilities are reserves for a past restructuring charge (money owed on abandoned le
Restructuring reserves were treated as tax deductible expenses on income statement when liability oc
Answers
Parts A and B on tab to right "Question 3 - Part 2"
Part C:
NOPAT
Net Investments
FCF
Part D:
Sales growth
EBIT growth
Current Assets
Current Liab.
Part E - CV:
1
2
3
4
2018
2019
2020
2021
124
142.6 147.163 151.875 156.735
121.32
49.90
41.97
40.22
21.28
97.26 109.91 116.52
19.68
83.20
86.95
85.26
10.0%
15.0%
9.6%
10.2%
3.2%
3.2%
3.2%
3.5%
3.2%
3.2%
3.2%
3.2%
3.2%
3.2%
3.2%
3.2%
120.25
3.20%
8.12%
2,443.08
2,443.08
1.0398
0.00
2,911.02
3.90%
4.50%
1.2
9.30%
3.58%
20.00%
80.00%
###
-44.50
-46.25
-47.73
-49.25
Forecast
2022
1247.71
181.48
805.34
260.89
99.13
13.61
14.75
62.39
90.75
0.00
1338.45
1429.19
124.77
10.21
6.59
141.58
0.00
141.58
t restaurant
owed on abandoned leases and store manager buyouts pending)
ement when liability occurred, but no actual deductions till money is paid out
5
2022
161.7507
41.50 Top slide on page 19
120.25
81.38 356.47
3.2%
3.2%
3.2%
3.2%
$ 2,443
-50.83
Total assets
Debt
Equity
$1
20%
$0
80%
$1
5.50%
1.2
3.90% Assumed 30 year t-bond yield
4.50%
38.00%
rd
b
rRF
RPM
Tax rate
a.
Cost of debt =
Cost of debt =
rd(1 T)
3.41%
rs =
rs =
rs =
WACC =
WACC =
WACC =
b.
bL =
bU =
c.
Debt
Equity
bL =
bL =
bL =
bL =
rs =
rs =
rs =
rRF
+
+
RPM
+
+
wc(rs)
3.90%
4.50%
0.68%
1.2
7.44%
8.12% Answer for Part B
bU
1.2 = bU
1.2 = bU
[1+
[1+
[1+
[1+
(1 T)
62.00%
D/E]
D/E]
0.25 ]
1.155
1.0390
$4.5
$5.5
bU
1.0390
1.0390
(1 T)
62.00%
1.50727
1.5660
rRF
3.90%
10.95%
+
+
RPM
4.50%
1.5660
0.81818 ]
d.
Debt
Equity
rd
Tax rate
rs
WACC =
WACC =
WACC =
$4.5
$5.5
8.50%
40.00%
10.95%
wd(rd)(1 - T)
2.30%
+
+
wc(rs)
6.02%
8.32%
e.
(1.) Decrease. The firm's net income decreases because its interest expense increases.
(2.) Decrease. The firm's ROA decreases because its net income declines but total assets
remains the same.
(3.) No change. EBIT is unaffected by a change in capital structure.
(4.) Increase. The firm's ROE will increase because its ROIC > r d(1 T).
(5.) Decrease. The firm's tax liability declines because interest expense increases and is tax
deductible, so the firm's taxable income declines.