(Answered) : Project Company 5

Question Description

Equity Valuation: RAOCC, ROIC, EVA

A. Book Value per Share last 5 years.

B. Ratio Market/Book Value last 5 years.

G. Economic Value Added Balance Sheet (last 5 years)

1. Capital Expenditures

a) Purposes and growth of CAPEX.

b) CAPEX ROIIC.

c) ROICC versus RAOCC

C. Value Creation/ Destruction last 5 years.

1. Derivation of RAOCC

a) Cost of Equity

1) Use 3 factor CAPM (if possible.)

2) Consistent use of Rm ,RF, (Rm -RF)

3) Consistent derivation of Beta(s).

4) Consistent weighting for Equity.

b) Cost of Debt.

1) Consistent Sources for Debt Tranches, Totals Outstanding, Coupon Rates.

2) Consistent Source for Corporate Tax Rate.

3) Consistent Weighting for Debt.

2. Derivation of ROIC.

a)