Beruflich Dokumente
Kultur Dokumente
Revenues
Cellular 446,503 830,497
Broadcast 0 116,820
RCC and Other 57,635 90,136
Net Revenue 504,138 1,037,453
Expenses:
Operating 437,745 715,288
Corporate 14,254 20,860
Depreciation 65,059 103,288
Amortization of Intangibles 127,312 149,637
Subtotal 644,370 989,073
Other Income
Interest Expense (245,523) (496,602)
Interest Income 54,097 45,612
Net gain on assets sold 28,204 1,172,896
Equity in income of unconsolidated investees 6,885 16,752
Nonrecurring benefit (Charge) (16,621)
1,135,240
129,481
100,850
1,365,571 1,249,102
888,419 767,679
16,514 15,522
143,231 129,928
201,376 154,767
1,249,540 1,067,896
116,031 181,206
(577,992) (377,955)
30,072 13,979
249,479 2,589
22,874 38,258
6,241
(153,295) (141,923)
(49,486) (23,062)
(202,781) (164,985)
(14,000) (16,439)
(134,300) (100,725)
(351,081) (282,149)
181,487,060 182,499,000
1,252,000 1,252,000
57,400,000 58,500,000
McCaw's Cost of Equity
%
Rf 10 Year Treasury Bond 6.47%
Rm S&P 500 Index Performance 15.360%
Beta McCaw 1.75
(As of 1991)
Amount Ratio
123.4 0.09
146.4 0.11
528.1 0.40
396.1 0.30
114.2 0.09
1308.2
Synergy Valuation
New Terminal Growth Rate 1%
New Cost of Debt(After Merger) 8.2%
New WACC 13.86%
Industry Average Avg Revenue /Subscriber Switch 1
New Marketing Reduction 10%
DCF Synergy Valuation 10114.90
AT&T Debt Rating AA 8.2%
Average Debt Rating 9.7%
Comparable Companies
Revenues ($ MnShare Price $ Shares Outstan
Mc Caw 1366.000 30.000 182.000
Comparable Companies
Cellular
Revenues ($ MnShare Price $ Shares Outstan
Air Touch Cellul 782.0 NA 424.0
US Cellular 99.0 19.8 48.0
Contel Cellular 235.0 23.0 100.0
Vanguard Cellul 89.0 27.0 25.0
Average
Comparable Companies
Local
Revenues ($ MnShare Price $ Shares Outstan
Ameritech 10818.0 31.3 533.0
Centel 1181.0 33.0 85.0
US West 10577.0 38.0 410.0
Bell South 14445.0 25.1 970.0
Bell Atlantic 12280.0 48.6 396.0
Pac Tel 9895.0 42.0 401.0
Average
Comparable Companies
Long Distance
Revenues ($ MnShare Price $ Shares Outstan
ATT Corp. 63089.0 39.0 1309.0
MCI Communica 8433.0 12.4 519.0
Sprint 9780.0 26.4 218.0
Average
le Companies Multiple Valuation
D/E ratio Price/Revenue Multiple Sector Mn $
0.950 3.997 Cellular 9818.35
le Companies Local 2354.66
Long Distance 1388.77
D/E ratio Price/Revenue Multiple
NA
0.200 9.576
0.770 9.787
0.270 2.200
7.188
le Companies
Modeling Assumptions:
Annual Pop Growth rate 1.00%
Annual Penetration Growth 23.50%
Purchase Remainder of LIN in 1995 YES
Present Value
12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 12/31/97 12/31/98 12/31/99 12/31/00
33% 32.50% 31.90% 31.40% 30.90% 30.30% 29.80% 29.30% 28.80%
0 1 2 3 4 5 6 7 8
10.33104 299.8152 278.4582 278.9181 310.4457 328.6176 352.3358 385.0546 422.43234
7499.784
12/31/01 12/31/02
28.30% 27.90%
12.20% 11.20%
21.90% 20.80%
450 450
2 2
49.34 49.84
14.96% 18.48%
7.38 9.21
28.95 29.24
16.80% 20.74%
4.86 6.06
4.86 6.06
28.95 29.24
78.29 79.08
9.75 12.23
2.48 3.03
12.23 15.26
10.99 13.75
45.69 45.06
6034 7439
23% 23%
-1708 -2075
-736 -833
3590 4530
-1321 -1547
2269 2983
1452 1909
1321 1547
-1115 -1363
-4 -6
1654 2087
15168
9 10
479.1316776 526.7611362
3827.4826
WACC 13.86%
Terminal Growth Rate 1%
Modeling Assumptions:
Annual Pop Growth rate 1.00%
Annual Penetration Growth 23.50%
Purchase Remainder of LIN in 199YES
Present Value
12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 12/31/97 12/31/98
33% 32.50% 31.90% 31.40% 30.90% 30.30% 29.80%
0 1 2 3 4 5 6
11.45 309.04 291.59 317.33 372.88 470.58 514.51
10114.90
12/31/99 12/31/00 12/31/01 12/31/02
29.30% 28.80% 28.30% 27.90%
3.3%