Page Number | Correction/Addendum |
195 | In illustration 10.2,
Dividends per share in 1994 = $ 2.00 (not $ 2.04) |
198 | Fifth line from the top..
"the fundamental growth model described in Chapter 7 (not chapter 5). |
200 | In illustration 10.5
Length of the high-growth period = 5 years |
219 | FCFE = Net Income - (1 - Debt Ratio) (Capital expenditures - depreciation) - (1 - Debt ratio) (Change in Working Capital) {not added, but subtracted) |
221 | In illustration 11.1
Chg in Working Capital (instead of ¶ Working Capital) |
231 | The expected cash flows were computed using
- (Cap Ex - Depr.) (.9) [not (Cap Ex - Depr.) (.09)] - Chg in Working Capital (.9) [not Chg in Working Capital (.09)] |
238 | The table has to be corrected as follows:
EBITDA = FCFF + EBIT(t) + Capital Expenditures + Chg in Working Capital NOI (1-t) = FCFF + (Cap Ex - Depr) + Non oper Exp (1-t) + Chg in Working Capital EBIT (1-t) = FCFF + (Cap Ex - Depr) + Chg in Working Capital At the bottom of the table, EBIT (1-t) = EBITDA(1-t) - Depreciation (1-t) EBIT = NOI - Nonoperating expenses |
243 | Add to Base year information
Market Value of debt outstanding now = $ 2,740.58 million |
255 | The current FCFF is estimated by assuming that the change in working capital = 0 |
294 | |
295 | |
298 | In illustration 14.6
The treasury bond rate used is 6% |
310 |
The same correction applies to the value/FCFF multiple. |
340 | See correction from page 294 above. |