Question: Construct the forecasting cash flow statement (Excel) based on Exhibit 7. Note: ignoring the interests, you should be able to calculate the depreciation through the

Construct the forecasting cash flow statement (Excel) based on Exhibit 7. Note: ignoring the interests, you should be able to calculate the depreciation through the CAPEX and Net PPE to determine the operating cash flow.

Exhibit 7 Rosetta Stone: Pricing the 2009 IPO Rosetta Stone Historical Financial

Exhibit 7 Rosetta Stone: Pricing the 2009 IPO Rosetta Stone Historical Financial Performance, 2006 to 2008 (in thousands of dollars except percent and share value) Revenue Revenue growth EBITDA EBITDA margin Total debt Total equity Total capital Capital turnover 2006 2007 2008 91,570 137,321 209,380 89% 52% 1,290 16,318 34,625 1.4% 11.9% 16.5% 13,309 58,125 Return on capital Estimated share value d Sp $6.08 50% 71,434 1.92 11.9% 9,910 79,071 88,981 2.24 30.9% $11.19 $17.49

Step by Step Solution

★★★★★

3.39 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Rosetta Stone Forecasting Cash Flow Statement 20092011 Assumptions Revenue growth rates 2009 40 2010 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...

Emerson Electric Company was founded in 1890 as a manufacturer of motors and fans. In 1993, Emerson marked its thirty-sixth consecutive year of improved earnings per share. On $8.2 billion sales, the...

Cash Flows From Working It may surprise you that there are cash flows associated with holding a job. Using the examples provided in Chapter 6, construct a simple cash flow statement and payback...

Analyze the financial condition of Bon-Ton by using ratio analysis USE the following formulas and methods: Common-size analysis Liquidity ratios Solvency Ratios DuPont Model (1) Common-size analysis:...

Why has Pecom taken on so much dollar denominated debt? Case: Drilling South: Petrobras Evaluates Pecom If you live in our neighborhood, you've got to look at Argentina. It's going through a major...

How much should Petrobras be willing to pay for Pecom's equity? Feel free to make adjustments and use any other methods of valuation to support your answer. Case: Drilling South: Petrobras Evaluates...

How should Petrobras deal with existing Pecom debt holders if it intends to buy the firm? Case: Drilling South: Petrobras Evaluates Pecom Joo Nogueira Batista, Chief Financial Officer of the...

Assuming a tax rate of 35%, what is the WACC the ADR holder should use to discount Pecom's cash flows? Case: Drilling South: Petrobras Evaluates Pecom If you live in our neighborhood, you've got to...

Suppose there is a 10 percent chance that the Argentinian government will nationalize the project before the first year's cash flows arrive, and a 10 percent chance it will do so every year after...

Many U.S. companies outsource activities, such as manufacturing, to factories in Asia and Latin America. For example, Nike manufactures shoes in Indonesia and Hewlett-Packard uses electrical parts...

An electric motor consumes 9.00 kJ of electrical energy in 1.00 min. If one-third of this energy goes into heat and other forms of internal energy of the motor, with the rest going to the molar...

At the beginning of your project, you solicit bids from vendors to select the one that is best for the project. Which procurement document should you prepare to fulfill this task? 1 point Request for...

Hot coffee is contained in a cylindrical thermos bottle that is of length L = 0.3 m and is lying on its side (horizontally). The coffee container consists of a glass flask of diameter D 1 = 0.07 m,...

At 400 K, the rate of decomposition of a gaseous compound initially at a pressure of 12.6 kPa was 9.71 Pa S-1 when 10.0 per cent had reacted and 7.67 Pa S-I when 20.0 per cent had reacted. Determine...

Date on the physical inventory of Chiron Co. as of December 31, 2012, is presented in the working papers. The quantity of each commodity on hand has been determined and recorded on the inventory...

Artic Appliances uses the periodic inventory system. Details regarding the inventory of appliances January 1, 2012, purchases invoices during the year, and the inventory count at December 31, 2012,...

The two pendulums shown in Fig. 13.34 each consist of a uniform solid ball of mass M supported by a mass less string, but the ball for pendulum A is very tiny while the ball for pendulum B is much...

company. operated from 2 0 2 2 to early 2 0 2 4 , when it had to close the business. When it started, the following accounting policies: $ 1 , 2 0 0 , 0 0 0 and hing - balance depreciation for the...

Refer to Problem 9.19 for Stebbins Corporation for Year 6, its first year of operations. Exhibit 9.19 shows the amounts for the Canadian subsidiary for Year 7. The average exchange rate during Year 7...

For this exercise, use the preceding data for Schwartz Company. Now assume that Schwartz pays common shareholders a dividend of $25 in Year +1. Assume that Schwartz uses long-term debt as a flexible...

A firm's income tax return shows taxes currently payable for Year 4 of $35,000. It reports deferred tax assets before any valuation allowance of $24,600 at the beginning of Year 4 and $27,200 at the...

The following data are from the Canada Health Survey, and given in Rao and Thomas (1989, p. 107) . They relate smoking status (current smoker, occasional smoker, never smoked) to fitness level for...

Samuels (1996) collected data to examine how well students do in follow-up courses if the prerequisite course is taught by a part-time or full-time instructor. The following table gives results for...

In Example 10.5 we used linearization to estimate V ().We can alternatively use the random group method to estimate the variance of . Calculate 11 22 12 21 for each of the seven random groups,...