Anda di halaman 1dari 4

This spreadsheet supports INSTRUCTOR analysis for the

case, "Worldwide Paper Company" (Case 18)

Copyright (C) 2008, by the University of Virginia Darden School Foundation.


WORLDWIDE PAPER COMPANY
Woodyard Investment Analysis ($000)

Adjustment for Inflation 2.0%

2007 2008 2009 2010 2011 2012 2013


Investment:
Capital Outlay 16,000 2,000 0 0 0 0 0
Net Working Capital (10% Sales) 0 400 620 20 21 21 22
Total Investment 16,000 2,400 620 20 21 21 22
Investment Recovery :
Equipment Salvage ($1,080)
Net Working Capital (full recovery) (1,104)

Earnings before Interest and Taxes (EBIT):


Sales Revenue 4,000 10,200 10,404 10,612 10,824 11,041

Cost of Good Sold (75% Sales) 75% (3,000) (7,650) (7,803) (7,959) (8,118) (8,281)
SG&A (5% Sales) 5.0% (200) (510) (520) (531) (541) (552)
Operating Savings 2,000 3,570 3,641 3,714 3,789 3,864
Depreciation ($18,000/6) (3,000) (3,000) (3,000) (3,000) (3,000) (3,000)
Total Costs & Expenses (4,200) (7,590) (7,682) (7,775) (7,871) (7,968)

EBIT (200) 2,610 2,722 2,837 2,953 3,072


- Taxes (40%) 80 (1,044) (1,089) (1,135) (1,181) (1,229)
NOPAT (120) 1,566 1,633 1,702 1,772 1,843
+ Depreciation 3,000 3,000 3,000 3,000 3,000 3,000
- Investment (16,000) (2,400) (620) (20) (21) (21) 2,162
= Free Cash Flow (16,000) 480 3,946 4,613 4,681 4,751 7,006

$1,483 = NPV @ WACC


WORLDWIDE PAPER COMPANY
Woodyard Investment Analysis ($000)

12.1% = IRR
Interest rates: December 2006
Bank loan rates (LIBOR)
1-year 5.38%

Government bonds: Corporate bonds (10-year maturities):


1-year 4.96% Aaa 5.37%
5-year 4.57% Aa 5.53%
10-year 4.60% A 5.78%
30-year 4.73% Baa 6.25%

Global Paper Financial Information:

Balance sheet accounts ($ millions, 2001):

Current long-term debt 500


Long-term debt 2,500 3,000 20.00% 5.78% 0.69%
Common equity 500 (Kd)
Retained earnings 2,000

Per share data:

Shares outstanding 500 million


Book value per share $5.00
Recent market value per share $24.00 12,000 80.00% 11.20% 8.96%
(Ke - CAPM)
Other financial information: 15,000 9.65%
(WACC)
Bond rating: A
Beta: 1.10
Tax rate: 40%
Market premium: 6.0%