投資學(xué)10版習(xí)題答案ch18-資料下載頁
2025-06-23 14:01本頁面
【正文】 model is $, as shown below.Calculate the required rate of return using the capital asset pricing model:k = rf + β (kM – rf) = 4% + (9% – 4%) = 13%Calculate the share value using the Gordon growth model:b. The sustainable growth rate of Rio National is %, calculated as follows:g = b ROE = Earnings retention rate ROE = (1 – Payout ratio) ROE =10. a. To obtain free cash flow to equity (FCFE), the two adjustments that Shaar should make to cash flow from operations (CFO) are:1. Subtract investment in fixed capital: CFO does not take into account the investing activities in longterm assets, particularly plant and equipment. The cash flows corresponding to those necessary expenditures are not available to equity holders and therefore should be subtracted from CFO to obtain FCFE.2. Add net borrowing: CFO does not take into account the amount of capital supplied to the firm by lenders (., bondholders). The new borrowings, net of debt repayment, are cash flows available to equity holders and should be added to CFO to obtain FCFE. b. Note 1: Rio National had $75 million in capital expenditures during the year.Adjustment: negative $75 millionThe cash flows required for those capital expenditures (–$75 million) are no longer available to the equity holders and should be subtracted from net ine to obtain FCFE.Note 2: A piece of equipment that was originally purchased for $10 million was sold for $7 million at yearend, when it had a net book value of $3 million. Equipment sales are unusual for Rio National.Adjustment: positive $3 millionIn calculating FCFE, only cash flow investments in fixed capital should be considered. The $7 million sale price of equipment is a cash inflow now available to equity holders and should be added to net ine. However, the gain over book value that was realized when selling the equipment ($4 million) is already included in net ine. Because the total sale is cash, not just the gain, the $3 million net book value must be added to net ine. Therefore, the adjustment calculation is:$7 million in cash received – $4 million of gain recorded in net ine = $3 million additional cash received added to net ine to obtain FCFE.Note 3: The decrease in longterm debt represents an unscheduled principal repayment。 there was no new borrowing during the year.Adjustment: negative $5 millionThe unscheduled debt repayment cash flow (–$5 million) is an amount no longer available to equity holders and should be subtracted from net ine to determine FCFE.Note 4: On January 1, 2013, the pany received cash from issuing 400,000 shares of mon equity at a price of $25 per share.No adjustmentTransactions between the firm and its shareholders do not affect FCFE. To calculate FCFE, therefore, no adjustment to net ine is required with respect to the issuance of new shares.Note 5: A new appraisal during the year increased the estimated market value of land held for investment by $2 million, which was not recognized in 2013 ine.No adjustmentThe increased market value of the land did not generate any cash flow and was not reflected in net ine. To calculate FCFE, therefore, no adjustment to net ine is required. c. Free cash flow to equity (FCFE) is calculated as follows:FCFE = NI + NCC – FCINV – WCINV + Net borrowingwhere: NCC = Noncash chargesFCINV = Investment in fixed capitalWCINV = Investment in working capitalMillion $ExplanationNI =$From Table 18GNCC =+$$ (depreciation and amortization from Table 18G) – $* (gain on sale from Note 2)FCINV =–$$ (capital expenditures from Note 1) – $* (cash on sale from Note 2)WCINV =–$–$ (increase in accounts receivable from Table 18F) +–$ (increase in inventory from Table 18F) +–$ (decrease in accounts payable from Table 18F)Net borrowing =+(–$)–$ (decrease in longterm debt from Table 18F)FCFE =$*Supplemental Note 2 in Table 18H affects both NCC and FCINV.11. Rio National’s equity is relatively undervalued pared to the industry on a P/Etogrowth (PEG) basis. Rio National’s PEG ratio of is below the industry PEG ratio of . The lower PEG ratio is attractive because it implies that the growth rate at Rio National is available at a relatively lower price than is the case for the industry. The PEG ratios for Rio National and the industry are calculated below:Rio NationalCurrent price = $Normalized earnings per share = $Pricetoearnings ratio = $25/$ = Growth rate (as a percentage) = 11PEG ratio = IndustryPricetoearnings ratio = Growth rate (as a percentage) = 12PEG ratio = 1816Copyright 169。 2014 McGrawHill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGrawHill Education
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