Other Expenses/Revenues

CapEx

1995
0.809
0.458

Growth Rate
Cost of Revenues
R&D % of Rev.
Depreciation % of Rev
Cost of Capital
Tax Rate
growth rate after 2005

0.548
0.104
0.368
0.055
0.12
0.34
0.04

1996
0.709
0.400

1997
0.609
0.341

1998
0.509
0.283

(dollars in thousands)
Revenues
Cost of goods sold
Gross Profit
Research & development
Other operating expenses
Operating income
Taxes
Net Income
Cumulative tax loss
carryforward

1995
17,321
1,801
15,520
6,115
13,449
(4,045)
0
(4,045)

1996
26,806
2,788
24,018
9,865
19,005
(4,852)
0
(4,852)

1997
41,485
4,314
37,170
15,266
25,264
(3,360)
0
(3,360)

1998
64,202
6,677
57,525
23,626
32,679
1,220
0
1,220

(4,045)

(8,896)

(12,257)

(11,037)

Depreciation
Change in working capital
Capital expenditures

953
0
7,933

1,474
0
10,713

2,282
0
14,160
(15,239)
0

Net cash flow

Terminal value

(11,025) (14,091)
0

1999
0.409
0.225

2000
0.309
0.166

2001
0.209
0.108

1999
2000
2001
99,359 153,767 237,970
10,333
15,992
24,749
89,025 137,776 213,221
36,564
56,586
87,573
40,638
47,514
49,736
11,824
33,675
75,912
267
11,450
25,810
11,556
22,226
50,102
0

3,531
0
18,169

5,465
0
22,323

8,457
0
25,577

13,088
0
25,701

(13,418)
0

(5,302)
0

5,106
0

37,490
0

Calculation of Stock Price from PV

PV(cash flows)
PV(terminal value)
Total PV (assets)

166,103
900,138
1,066,241

less Long Term Debt

Total PV(equity)

2,236
1,064,004

Current shares (000)

New shares (000)
Total shares (000)

33,000
5,000
38,000

Value per share

28.00 By Using the Goal Seek function or excel solver we can find the needed growth rate

2002
0.209
0.108

2003
0.209
0.108

2004
0.209
0.108

2005
0.209
0.108

2002
368,282
38,301
329,981
135,528
76,971
117,482
39,944
77,538

2003
569,953
59,275
510,678
209,743
119,120
181,815
61,817
119,998

2004
882,058
91,734
790,324
324,597
184,350
281,376
95,668
185,708

2005
1,365,071
141,967
1,223,104
502,346
285,300
435,458
148,056
287,402

20,256
0
39,774

31,347
0
61,555

48,513
0
95,262

75,079
0
147,428

58,019
0

89,790
0

138,959
0

215,053
2,795,693

can find the needed growth rate for the share price to be $28