Assignment #1:
Additional info:
1. Pepsi common stock closed at a price $62.55 per share and there were $1,683 million
shares outstanding.
2. The Change in working capital = - $1,328 million (Representing a net disinvestment in working
capital that freed up cash)
3. Net Capital expenditure = $933 million
Compute pepsi’s :
 Book value
 Market value
Book value per share =
Total common shareholder equity/Number of common shares
Total shareholder equity =
Total assets – Total liabilities
Total assets
Total liabilities
29,930
14,562
Total shareholder equity =
15,368
BVPS =
9.131313131
Market value =
Current market price (per share)∗Total number of outstanding
shares
current market price(per
share)
No. of outstanding shares
62.55
1,683
Market value =
10,5271.65
Tea Co. shows the following information on its income statement & balance
sheet:
• Current Accounts
 2015: CA = 3625; CL = 1787
 2014: CA = 3596; CL = 2140
• Fixed Assets and Depreciation
 2015: NFA = 2194; 2014: NFA = 2261
 Depreciation Expense = 500
• Long-term Debt and Equity
 2015: LTD = 538; Common stock & APIC = 462
 2014: LTD = 581; Common stock & APIC = 372
• Income Statement
 EBIT = 1014; Taxes = 368
 Interest Expense = 93; Dividends = 285
a. What is the operating cash flow?
Operating cash flow =
EBIT + depreciation - tax payment
EBIT
depreciation
tax
1,014
500
368
OCF =
1,146
b. What is the cash flow to creditors?
Cash flow for creditors
=
Interest paid - Net new borrowing
Net new borrowing =
ending LTD - beginning LTD
ending LTD
beginning LTD
538
581
net new borrowing =
-43
cash flow for creditors =
136
c. What is the cash flow to stockholders?
cash flow for stockholders =
dividends paid - net new equity raised
net new equity raised =
ending contributed capital - beginning contributed capital
ending contributed capital
beginning contributed capital
462
372
net new capital raised =
90
Cash flow for stockholders =
195