Answer Happy

Total Assets Total Debt Total Sales Net Income EBIT XYZ Inc.: Key Financial Information (in $ millions) 2021 FOREIGN Depreciation & Amortization (D&A) Capital Expenditure (Capex) Change in Net Working Capital Company ABC Co. DEF Inc. GHI Ltd. J&K LLP. And these following conditions: STUDIE These indicators of financial performance from other companies in the same industry: Trailing P/E Ratio 13.4 11.2 9.9 15.1 Stock Price ($/share), 12/31/2021 Earnings per share (EPS), 2021 Forecasted earnings per share (EPS), 2022 Number of shares outstanding BV of Short-Term Debt BF of Long-Term Debt (Leveraged) Beta 400.0 172.0 1,070.5 187.0 232.0 (35.2) 96.8 (30.0) हीर Yield-to-maturity, 10-year US Treasury bonds (at 12/29/2021) Equity risk premium Effective Tax Rate Effective Interest Rate Inflation Remember that: TE = TE + B * (TM-TF) TR Forward P/E Ratio 11.0 10.6 10.5 13.9 E WACC = TE * + TD * (1 - Tx) * E+D D E+D 2022 423.0 189.0 1,130.0 195.4 245.2 (38.7) 106.5 (28.4) | FCF = EBIT * (1 − ETR) + D&A - Capex - $22 $1.84 $1.87 87 million $12 million $160 million 0.75 1.92% 5.0% 25% 8.5% 1.0% - AWC 2. (10 marks) Calculate the actual profit margin and ROE for 2021, and the forecasted profit margin and ROE for 2022. What do these results tell you about the financial performance of XYZ Inc.? 3. (20 marks) Calculate the indirect valuation of XYZ Inc., using the benchmark information provided. Briefly analyze what this valuation means.