You are a security analyst responsible for following Jaguar's stock after itfloats. (Assume the company had 100 million shares outstanding.)What is your estimate of Jaguar's stock price given a 10% drop in the realvalue of the dollar? FCF valuation method is what we used on the previous question....this is the follow-up question...What is Jaguar’s market value exposure (and delta) with respect to the real dollar/sterling exchange rate? Projected 1983 1984 1 Dollar/sterling 1.350 United States 2 Growth, units (%) 12.0% 3 Volume, units 15260 17091 4 Inflation (%) 3.0% 5 US$ price/unit 25631 6 sales, dollars 438065 7 sales, sterling 324492 Rest of the world 8 Growth, units (%) 12.0% 9 Volume, units 13207 14792 10 Inflation (%) 5.0% 11 price/unit , sterling 17284 12 sales, sterling 255662 13 var. cost of sales/unit 13521 14 NWC 30000 15 discount rate 18.0% Total sales, units 31883 16 Total revenues 580154 17 Var. cost sales 431091 18 Depreciation 10000 19 R&D 18000 20 Distribution 13300 13965 21 Administration 22000 23100 22 Total Costs 496156 23 EBIT 83999 24 Tax 29400 25 EBIAT 54599 26 Depreciation 10000 27 Operating cash flow 64599 28 Increase NWC 30000 29 Capital Expenditure 11500 30 FCF 23099 31 Terminal value discount factor 1.00 32 PV, FCF 23099 33 Value of firm (sterling)
You are a security analyst responsible for following Jaguar's stock after itfloats. (Assume the company had 100 million shares outstanding.)What is your estimate of Jaguar's stock price given a 10% drop in the realvalue of the dollar? FCF valuation method is what we used on the previous question....this is the follow-up question...What is Jaguar’s market value exposure (and delta) with respect to the real dollar/sterling exchange rate? Projected 1983 1984 1 Dollar/sterling 1.350 United States 2 Growth, units (%) 12.0% 3 Volume, units 15260 17091 4 Inflation (%) 3.0% 5 US$ price/unit 25631 6 sales, dollars 438065 7 sales, sterling 324492 Rest of the world 8 Growth, units (%) 12.0% 9 Volume, units 13207 14792 10 Inflation (%) 5.0% 11 price/unit , sterling 17284 12 sales, sterling 255662 13 var. cost of sales/unit 13521 14 NWC 30000 15 discount rate 18.0% Total sales, units 31883 16 Total revenues 580154 17 Var. cost sales 431091 18 Depreciation 10000 19 R&D 18000 20 Distribution 13300 13965 21 Administration 22000 23100 22 Total Costs 496156 23 EBIT 83999 24 Tax 29400 25 EBIAT 54599 26 Depreciation 10000 27 Operating cash flow 64599 28 Increase NWC 30000 29 Capital Expenditure 11500 30 FCF 23099 31 Terminal value discount factor 1.00 32 PV, FCF 23099 33 Value of firm (sterling)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
You are a security analyst responsible for following Jaguar's stock after it
floats. (Assume the company had 100 million shares outstanding.)
What is your estimate of Jaguar's stock price given a 10% drop in the real
value of the dollar? FCF valuation method is what we used on the previous question....this is the follow-up question...What is Jaguar’s market value exposure (and delta) with respect to the real dollar/sterling exchange rate?
| Projected | |||
| 1983 | 1984 | ||
| 1 | Dollar/sterling | 1.350 | |
| United States | |||
| 2 | Growth, units (%) | 12.0% | |
| 3 | Volume, units | 15260 | 17091 |
| 4 | Inflation (%) | 3.0% | |
| 5 | US$ price/unit | 25631 | |
| 6 | sales, dollars | 438065 | |
| 7 | sales, sterling | 324492 | |
| Rest of the world | |||
| 8 | Growth, units (%) | 12.0% | |
| 9 | Volume, units | 13207 | 14792 |
| 10 | Inflation (%) | 5.0% | |
| 11 | price/unit , sterling | 17284 | |
| 12 | sales, sterling | 255662 | |
| 13 | var. cost of sales/unit | 13521 | |
| 14 | NWC | 30000 | |
| 15 | discount rate | 18.0% | |
| Total sales, units | 31883 | ||
| 16 | Total revenues | 580154 | |
| 17 | Var. cost sales | 431091 | |
| 18 | 10000 | ||
| 19 | R&D | 18000 | |
| 20 | Distribution | 13300 | 13965 |
| 21 | Administration | 22000 | 23100 |
| 22 | Total Costs | 496156 | |
| 23 | EBIT | 83999 | |
| 24 | Tax | 29400 | |
| 25 | EBIAT | 54599 | |
| 26 | Depreciation | 10000 | |
| 27 | Operating cash flow | 64599 | |
| 28 | Increase NWC | 30000 | |
| 29 | Capital Expenditure | 11500 | |
| 30 | FCF | 23099 | |
| 31 | Terminal value | ||
| discount factor | 1.00 | ||
| 32 | PV, FCF | 23099 | |
| 33 | Value of firm (sterling) |
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