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Principal
Outstanding
Year
principal
repayments
interest @
6.5%
125.00 118.75
1
93.75 87.50 81.25 75.00 68.75 62.50 56.25 50.00 43.75 37.50
10
11
12
13
14
15
6.25
6.25
6.25
6.25
6.25
6.25 6.25 6.25 6.25 6.25 6.25 6.25 6.25 6.25 37.50
8.13
7.72
7.31
6.91
6.50
6.09 5.69 5.28 4.88 4.47 4.06 3.66 3.25 2.84 2.44
Principal
Outstanding
Year
principal
repayments
interest @
6.5%
Cash outflow
125.00
1
118.75
2
112.50 106.25 100.00 93.75 87.50 81.25 75.00 68.75 62.50 56.25 50.00 43.75 37.50
3
10
11
12
13
14
15
6.25
6.25
6.25
6.25
6.25
6.25
6.25
8.13
7.72
7.31
6.91
6.50
6.09
5.69
14.38
13.97
13.56
13.16
12.75
12.34
11.94
9.91
9.50
9.09 39.94
Principal
Outstanding
Year
principal
repayments
interest @
6.5%
125.00
1
118.75
2
112.50 106.25 100.00 93.75 87.50 81.25 75.00 68.75 62.50 56.25 50.00 43.75 37.50
3
10
11
12
13
14
15
6.25
6.25
6.25
6.25
6.25
6.25
6.25
8.13
7.72
7.31
6.91
6.50
6.09
5.69
Cash outflow
14.38
13.97
13.56
13.16
12.75
12.34
11.94
Cash outflow
(after tax
subsidy)
11.53
11.27
11.00
10.74
10.48
10.21
9.95
9.68
9.42
9.15
8.89
9.91
9.50
9.09 39.94
8.63
8.36
8.10 39.08
Equity
7.5 m as dividend (1$ per share as dividend)
7.5/125 is 6%
Andrea winfield
Consideration of principal repayment
Only interest it is 6.5%
On principal repayment 9.225%
EBIT of 66 million
11.53 m in 1st year
1.58 (10% on 15.8 million on leases)
66/(11.53+1.58) = 5x
Ted Kale
Winfield Refuse Management
Price-Earnings Ratio
Low
11.91
10.83
11.12
10.36
10.23
8.29
10.85
9.60
11.35
10.20
12.07
9.99
17.4
Waste Management
15.3
Republic Services
22.4
Waste Connections
Ted Kale
common stock
(million )
ownership
percentage
Initial owners
holding
(million )
15
79%
11.85
22.5
52.67%
11.85
1,46,272
2,71,272
Retained earnings
5,23,295
5,23,295
Debt
125000
Leases
15813
D/E
0.21
15,813
0.02
Long-Term Debt to
Equity
Waste Management
1.5
Republic Services
0.9
Waste Connections
0.6
1.1
26.2
EBIT
bond
Bond (principal
repayment)
stock
24.35
0.7
0.7
0.29
66
2.51
1.91
2.09
0.04346
0.0290
0.04322
Slope
EPS vs EBIT
3
2.5
EPS
1.5
bond
1
stock
0.5
Bond (principal repayment)
0
10
20
30
40
EBIT
50
60
70
EBIT (million $)
24.35
66
1.581
1.581
6.25
6.25
8.125
8.125
2.509
6.800
11.531
11.531
1.86
5.03