40%

3%

Tax Rate
Terminal Growth Rate

Revenue

Operating Expanses(including depreciation)

Men's Athletic
Men's Casual
Women's Athletic
Women's Casual

2007
251957
52179
138390
36802

Consolidated

479328

Men's Athletic
Men's Casual
Women's Athletic
Women's Casual

218435
43834
124302
37265

Consolidated

423836

8487

Corporate Overhead

47005
0.0980643735

Operating Profit (EBIT)

Operating margins
EBIT(1-t)

28203

Depreciation

9587

Capex

11983

Change in WC
Working Capital (WC)
FCFF

4568
104117

108685
21239

Terminal Value

PV of FCFF

19599.73862629

Value of firm

545260.398456

All figures in $ '000

2008
282192
53223
153613
0

2009
310411
54287
167438
0

2010
335244
55916
179159
0

2011
352006
57594
188117
0

2012

489028

532136

570319

597717

615648.51

244647
44711
137976
0

269112
45605
150393
0

290641
46973
160921
0

305173
48382
168967
0

427334

465110

498535

522522

538197.66

8659

9422

10098

10583

10900.49

53035
57604
61686
64612
66550.36
0.1084498229 0.1082505224 0.1081605207 0.1080979795 0.1080979795
31821

34562.4

37011.6

38767.2

39930.216

9781

10643

11406

11954

12226

13303

14258

14943

2648

9805

8687

6234

4081.77

111333

121138

129825

136059

140140.77

26728

22097.4

25472.6

29544.2

35848.446

668354.17778

22761.395885 17365.601148 18473.029999

467060.6328

Company

Market Value of Equity

Beta

D&B
Marina
General
Kinsley
Victory
Surfside
Alpine
Heartland
Templeton

420098
1205795
533463
165560
35303250
570684
1056033
1454875
397709

Total

41107467

Weighted average unlevered beta

2.68
1.94
1.92
1.12
0.97
2.13
1.27
1.01
0.98

29.90%
-7.60%
32.20%
49.70%
21.70%
34.30%
28.50%
-6.70%
42.60%

0.94146

Levered beta with 20% debt

U.S. Market Risk Premium
Cost of Debt (Kd)

D/E

1.0544297991

Cost of Equity (Ke)

4.16%
6%
0.0931642796

WACC

0.0836368997

Unlevered Beta

Weight of market value

2.2723
2.0327
1.6091
0.8627
0.8583
1.7665
1.0845
1.0523
0.7805

0.0102
0.0293
0.0130
0.0040
0.8588
0.0139
0.0257
0.0354
0.0097

2007

2008

2009

Assets
Cash
A/C receivables
Inventory
Prepaid Expenses

4161
47888
83770
14474

4195
48857
85465
14767

4566
53164
92999
16069

PPE
Trademarks
Goodwill
Other Assets

35015
43853
43051
11162

37460
43853
43051
11162

40120
43853
43051
11162

150293

153284

166798

Liabilities
A/C Payables
Accrued expenses

18830
22778

18985
22966

20664
24996

Deferred tax
Pension obligation

11654
9080

11654
9080

11654
9080

Total Current Liabilities

41608

41951

45660

108685

111333

121138

Total Current Assets:-

Working capital

2010

2011

4894
56978
99672
17222

5130
59715
104460
18049

42972
43853
43051
11162

45961
43853
43051
11162

178766

187354

22149
26792

23214
28081

11654
9080

11654
9080

48941

51295

129825

136059