Book Value Market Value

Long term debt 526.7 0.232868 Common shares

Common shareholder's equity 717.7 0.317314
Short term D 1017.4
Total 2261.8
Total liabilities 1544.1
Book Value 2261.8

Mkt V/Book V 3.01

Mkt V of equity 2160.277
Mkt V of company 3704.377
45533
Year Debt repayment Debt repayment(%of the Total) Maturity Weighted maturity Yield

1997 150 2 7.25%

1999 200 4 8%

2001 140 6 8%
Yield at is Characteristics

7.42%

8.18%

convertible at 32.5 per share

Rating AAA AA A BBB BB B
Long term debt/capital 0.133 0.211 0.316 0.427 0.556 0.655 1-x 0.867
Long term debt 110.097 191.9324 331.569 534.8305 898.7414 1362.59 717.7/x 95.4541
Equity 717.7 717.7 717.7 717.7 717.7 717.7 debt 110.097
tax 40% 40% 40% 40% 40% 40%
cost of D 6.70% 6.90% 7% 7.40% 9% 10.60%
cost of equity 10.25% 10.30% 10.40% 10.50% 11.75% 13%
weight of D 0.133 0.211 0.316 0.427 0.556 0.655
weight of equity 0.867 0.789 0.684 0.573 0.444 0.345
WACC 0.094214 0.090002 0.084408 0.079124 0.082194 0.086508

Long term debt/capital = Long term debt/ (Long term debt +Stockholders equity)
Equity value = 717.7
 0.789 0.684 0.573 0.444 0.345
151.4347 226.7932 306.4579 399.0412 470.0935
191.9324 331.569 534.8305 898.7414 1362.59
Revenues= Net Sales 2236.9
Operating expenses 2147.7
Depreciation 132.7
Variation in net working capital 148.3
CAPEX 167.9
Tax rate 40%
FCF 87

Working capital 2005 738.5

Working capital 2004 886.8
Change in working capital -148.3
Capital expenditures are presented in the Exibit 1 as additions to property, plant and equipment.
Rating AAA AA A BBB BB
Free operating cash flow/total debt 60% 26.80% 20.90% 7.20% 1.40%
total debt 145 324.6269 416.2679 1208.333 6214.286

Rating AAA AA A BBB BB

Total debt/Capital including short term debt 26% 33.60% 39.70% 47.80% 59.40%
Total debt 585.8062 759.9648 897.9346 1081.14 1343.509
Cost of debt 6.70% 6.90% 7% 7.40% 9%
EBIT 89.2 89.2 89.2 89.2 89.2
Interest expense 39.24902 52.43757 62.85542 80.00439 120.9158
Polaroid's EBIT coverage ratio 2.272668 1.70107 1.41913 1.114939 0.737703
if using the EBIT forecast from exhibit 6(average) 6.222831 4.657729 3.885743 3.052832 2.019918
B
-0.90%
9667.87

B
69.50%
1571.951
10.60%
89.2
166.6268
0.535328
1.465791