Modiglani & Miller Equity Proposition Example

4
Chai Shop PGDBM No reinve Equity 200000 FA 100000 Equity Debt 50000 Var cost per cup 4 Debt D/E 0.2 Sold number of cup 30000 D/E Year 1 Int 10% tax 40% Sales 300000 Cost 120000 0.4 GP 180000 0.6 SDA 36000 0.12 EBITDA 144000 0.48 Deprec 20000 0.066667 EBIT 124000 0.413333 Int 5000 0.016667 PBT 119000 0.396667 Taxes 47600 0.158667 PAT 71400 0.238 ROE 35.7% Equity 200000 Cash 20000 0.08 Equity Debt 50000 FA 100000 0.4 Debt CA 130000 0.52 250000 Asset 230000 Sales/Ass 1.30434782608696

description

finance

Transcript of Modiglani & Miller Equity Proposition Example

Sheet1Chai Shop PGDBMNo reinvestmentEquity200000FA100000Equity271400FA100000271400Debt50000Var cost per cup4Debt50000Var cost per cup467850D/E0.2Sold number of cups30000D/E0.1842299189Sold number of cups300003856840710Year 1Int10%54280Int10%339250tax40%tax40%0.2

Sales300000Sales300000385680407100Cost1200000.4Cost1200000.41542721628400.4GP1800000.6GP1800000.62314082442600.6SDA360000.12SDA360000.1246281.6488520.12EBITDA1440000.48EBITDA1440000.48185126.41954080.48Deprec200000.0666666667Deprec200000.066666666725712271400.0666666667EBIT1240000.4133333333EBIT1240000.4133333333159414.41682680.4133333333Int50000.0166666667Int50000.0166666667542867850.0166666667PBT1190000.3966666667PBT1190000.3966666667153986.41614830.3966666667Taxes476000.1586666667Taxes476000.158666666761594.5664593.20.1586666667PAT714000.238PAT714000.23892391.8496889.80.238

ROE35.7%ROE0.26308032420.340426823935.7%

Equity200000Cash200000.08Equity271400Cash9140025712Debt50000FA1000000.4Debt50000FA100000128560CA1300000.52CA130000167128250000321400321400Asset230000Dupont0.26308032420.357

Sales/Assets1.3043478261

Sheet2All EquityEquity200000FA100000Equity250000FA100000Debt50000Var cost per cup4Debt0Var cost per cup4D/V0.2Sold number of cups30000D/V0Sold number of cups30000Year 1Int10%Year 1Int10%tax0%tax0%

Sales300000Sales300000Cost1200001Cost1200001GP1800001.5GP1800001.5SDA360000.3SDA360000.3EBITDA1440001.2EBITDA1440001.2Deprec200000.1666666667Deprec200000.1666666667EBIT1240001.0333333333EBIT1240001.0333333333Int50000.0416666667Int00PBT1190000.9916666667PBT1240001.0333333333Taxes00Taxes00PAT1190000.9916666667PAT1240001.0333333333

ROE59.5%ROE49.6%ROA49.6%ROA49.6%

Equity200000Cash200000.08Equity200000Cash200000.08Debt50000FA1000000.4Debt50000FA1000000.4CA1300000.52CA1300000.52250000250000Asset230000Asset230000

Sales/Assets1.3043478261Sales/Assets1.3043478261

Sheet3


CHAPTER 2 THE THEORY OF CAPITAL STRUCTURE · Modigliani and Miller (1963: 433) subsequently corrected their capital structure irrelevance proposition for taxes. Because interest on

CHAPTER 2 THE THEORY OF CAPITAL STRUCTURE · Modigliani and Miller (1963: 433) subsequently corrected their capital structure irrelevance proposition for taxes. Because interest on

Modigliani-Miller Theorem Overviewebdv.free.fr/Teaching/advances/material/biblio22.pdf · Ł The Modigliani-Miller Theorems. Š MM Proposition I. ... Under some assumptions, corporate

Modigliani-Miller Theorem Overviewebdv.free.fr/Teaching/advances/material/biblio22.pdf · Ł The Modigliani-Miller Theorems. Š MM Proposition I. ... Under some assumptions, corporate

Debt and Value: Beyond Miller- Modigliani · Will the value of equity per share increase as debt ... The Miller-Modigliani Theorem ... Default risk will go up and bond ratings will

Debt and Value: Beyond Miller- Modigliani · Will the value of equity per share increase as debt ... The Miller-Modigliani Theorem ... Default risk will go up and bond ratings will

EQUITABLE CLASSROOM PRACTICES and STRATEGIES for STEM EDUCATION Blanca Miller, B.S. Equity and Diversity Specialist Washoe County School District.

EQUITABLE CLASSROOM PRACTICES and STRATEGIES for STEM EDUCATION Blanca Miller, B.S. Equity and Diversity Specialist Washoe County School District.

Equity The Hon. Mr Justice P.W. Young - NSW Barnswbar.asn.au/docs/professional/prof_dev/BPC/course_files/Equity... · Equity The Hon. Mr Justice P.W ... This proposition has its limitations

Equity The Hon. Mr Justice P.W. Young - NSW Barnswbar.asn.au/docs/professional/prof_dev/BPC/course_files/Equity... · Equity The Hon. Mr Justice P.W ... This proposition has its limitations

1 CHAPTER 16: CAPITAL STRUCTURE – BASIC CONCEPTS Topics: –16.1-16.2 The Basics –16.3-16.4 Capital Structure in Perfect Markets Modigliani and Miller: Proposition.

1 CHAPTER 16: CAPITAL STRUCTURE – BASIC CONCEPTS Topics: –16.1-16.2 The Basics –16.3-16.4 Capital Structure in Perfect Markets Modigliani and Miller: Proposition.

April 3, 20081 The Private Equity Value Proposition How Real Is It ? Moderator Peter Wolken Vice Chairman, Executive Advisory Board Thunderbird Private.

April 3, 20081 The Private Equity Value Proposition How Real Is It ? Moderator Peter Wolken Vice Chairman, Executive Advisory Board Thunderbird Private.

Practical Tax Considerations for Equity Compensation Plans Compensation Plans - Federate… · Practical Tax Considerations for Equity Compensation Plans Todd Miller Carl Irvine McMillan

Practical Tax Considerations for Equity Compensation Plans Compensation Plans - Federate… · Practical Tax Considerations for Equity Compensation Plans Todd Miller Carl Irvine McMillan

Ateliers SNT - Académie de Versailles · données reçues Proposition de correction Proposition de correction Cartes de mesure Proposition de correction Proposition de correction

Ateliers SNT - Académie de Versailles · données reçues Proposition de correction Proposition de correction Cartes de mesure Proposition de correction Proposition de correction

Guidelines - Proposition A and Proposition C Local Returnmedia.metro.net/projects_studies/local_return/images/lr_guide.pdf · 1 Proposition A and Proposition C Local Return Guidelines

Guidelines - Proposition A and Proposition C Local Returnmedia.metro.net/projects_studies/local_return/images/lr_guide.pdf · 1 Proposition A and Proposition C Local Return Guidelines

Chart for POP Woodley · David Ryan- Miller Theodore Miller Lydell Miller Tyler Miller Riley Miller Cecily Sonia Tuquia n Miller Tuquian Miller Claire Miller Sha ron Miller Jason

Chart for POP Woodley · David Ryan- Miller Theodore Miller Lydell Miller Tyler Miller Riley Miller Cecily Sonia Tuquia n Miller Tuquian Miller Claire Miller Sha ron Miller Jason

White Rose Research Online - Promoting Bank …eprints.whiterose.ac.uk/92779/8/2094-2671-1-PB.pdf“debt-equity irrelevance proposition theorem” (Modigliani & Miller 1958), in the

White Rose Research Online - Promoting Bank …eprints.whiterose.ac.uk/92779/8/2094-2671-1-PB.pdf“debt-equity irrelevance proposition theorem” (Modigliani & Miller 1958), in the

Creating awesome value proposition using Value Proposition Canvas

Creating awesome value proposition using Value Proposition Canvas

Proposition A and Proposition C LOCAL RETURNmedia.metro.net/images/lr_guide.pdf · 2013-04-17 · Proposition A and Proposition C Ordinances, Jurisdictions have three years to expend

Proposition A and Proposition C LOCAL RETURNmedia.metro.net/images/lr_guide.pdf · 2013-04-17 · Proposition A and Proposition C Ordinances, Jurisdictions have three years to expend

PROPOSITION BETS: Craps...PROPOSITION BETS: Proposition Bets are located in the center of the Craps game and are booked (acknowledged) by the Stickperson. The following Proposition

PROPOSITION BETS: Craps...PROPOSITION BETS: Proposition Bets are located in the center of the Craps game and are booked (acknowledged) by the Stickperson. The following Proposition

Corporate Debt and Equity: Another Look at their ... · their Determinants - Frontiers in Finance and Economics – Vol 10 N°2, 31 - 62 33 Miller (MM, 1958)), one gets the proposition

Corporate Debt and Equity: Another Look at their ... · their Determinants - Frontiers in Finance and Economics – Vol 10 N°2, 31 - 62 33 Miller (MM, 1958)), one gets the proposition

Employee Value Proposition - Customer Value Proposition

Employee Value Proposition - Customer Value Proposition

Proposition S & Proposition N Overview

Proposition S & Proposition N Overview

Modigliani-Miller and the risk-free rate · 5/20/2020  · 2 The violation of the Modigliani–Miller proposition highlights an underestimated risk-free rate 6 3 Adopting a higher

Modigliani-Miller and the risk-free rate · 5/20/2020  · 2 The violation of the Modigliani–Miller proposition highlights an underestimated risk-free rate 6 3 Adopting a higher

Political Shirking Proposition 13 vs. Proposition 8 Shirking − Proposition 13 vs. Proposition 8† Seiji Fujii‡ Department of Economics University of California, Irvine April 2,

Political Shirking Proposition 13 vs. Proposition 8 Shirking − Proposition 13 vs. Proposition 8† Seiji Fujii‡ Department of Economics University of California, Irvine April 2,