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  • Modiglani & Miller Equity Proposition Example

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    3 views4 pages

    Modiglani & Miller Equity Proposition Example

    Uploaded by

    velusn
    finance

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Chai Shop PGDBM

    Equity
    Debt
    D/E
    Year 1

    No reinvestment

    200000
    50000
    0.2

    FA
    Var cost per cup
    Sold number of cups
    Int
    tax

    Sales
    Cost
    GP
    SDA
    EBITDA
    Deprec
    EBIT
    Int
    PBT
    Taxes
    PAT
    ROE
    Equity
    Debt

    300000
    120000
    180000
    36000
    144000
    20000
    124000
    5000
    119000
    47600
    71400

    Equity
    Debt
    D/E

    0.4
    0.6
    0.12
    0.48
    0.066667
    0.413333
    0.016667
    0.396667
    0.158667
    0.238

    35.7%

    200000 Cash
    50000 FA
    CA

    20000
    100000
    130000
    250000

    Asset

    230000

    Sales/Asset

    100000
    4
    30000
    10%
    40%

    1.3043478261

    0.08
    0.4
    0.52

    Equity
    Debt

    o reinvestment
    271400 FA
    100000
    50000 Var cost pe
    4
    0.18423 Sold numbe
    30000
    54280 Int
    10%
    tax
    40%

    Sales
    Cost
    GP
    SDA
    EBITDA
    Deprec
    EBIT
    Int
    PBT
    Taxes
    PAT
    ROE

    300000
    120000
    180000
    36000
    144000
    20000
    124000
    5000
    119000
    47600
    71400
    0.26308

    271400 Cash
    50000 FA
    CA
    321400
    Dupont

    0.4
    0.6
    0.12
    0.48
    0.066667
    0.413333
    0.016667
    0.396667
    0.158667
    0.238

    0.26308

    91400
    100000
    130000
    321400

    271400
    67850
    38568

    40710
    339250
    0.2

    385680
    154272
    231408
    46281.6
    185126.4
    25712
    159414.4
    5428
    153986.4
    61594.56
    92391.84

    407100
    162840
    244260
    48852
    195408
    27140
    168268
    6785
    161483
    64593.2
    96889.8

    0.340427

    35.7%

    25712
    128560
    167128

    0.357

    0.4
    0.6
    0.12
    0.48
    0.066667
    0.413333
    0.016667
    0.396667
    0.158667
    0.238

    All Equity
    Equity
    Debt
    D/V
    Year 1

    200000
    50000
    0.2

    FA
    100000
    Var cost pe
    4
    Sold numbe
    30000
    Int
    10%
    tax
    0%

    Sales
    Cost
    GP
    SDA
    EBITDA
    Deprec
    EBIT
    Int
    PBT
    Taxes
    PAT
    ROE
    ROA
    Equity
    Debt

    300000
    120000
    180000
    36000
    144000
    20000
    124000
    5000
    119000
    0
    119000

    Equity
    Debt
    D/V
    Year 1

    250000
    0
    0

    Equity
    Debt

    200000
    50000

    1
    1.5
    0.3
    1.2
    0.166667
    1.033333
    0.041667
    0.991667
    0
    0.991667

    59.5%
    49.6%

    200000 Cash
    50000 FA
    CA

    20000
    100000
    130000
    250000

    Asset

    230000

    Sales/Asset 1.304348

    0.08
    0.4
    0.52

    FA
    100000
    Var cost pe
    4
    Sold numbe
    30000
    Int
    10%
    tax
    0%

    Sales
    Cost
    GP
    SDA
    EBITDA
    Deprec
    EBIT
    Int
    PBT
    Taxes
    PAT
    ROE
    ROA

    300000
    120000
    180000
    36000
    144000
    20000
    124000
    0
    124000
    0
    124000

    1
    1.5
    0.3
    1.2
    0.166667
    1.033333
    0
    1.033333
    0
    1.033333

    49.6%
    49.6%

    Cash
    FA
    CA

    20000
    100000
    130000
    250000

    Asset

    230000

    Sales/Asset 1.304348

    0.08
    0.4
    0.52

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