Corporate Finance Examination

BETA

Date	Amazon	E-Bay		S&P 500	NASDAQ	T-Bill
4/1/13	$ 253.81	$ 22.05		1,597.57	3,328.79	0.0038%
5/1/13	$ 269.20	$ 22.77		1,630.74	3,455.91	0.0025%
6/1/13	$ 277.69	$ 21.77		1,606.28	3,403.25	0.0025%
7/1/13	$ 301.22	$ 21.76		1,685.73	3,626.37	0.0025%
8/1/13	$ 280.98	$ 21.04		1,632.97	3,589.87	0.0017%
9/1/13	$ 312.64	$ 23.48		1,681.55	3,771.48	0.0004%
10/1/13	$ 364.03	$ 22.18		1,756.54	3,919.71	0.0028%
11/1/13	$ 393.62	$ 21.26		1,805.81	4,059.89	0.0046%
12/1/13	$ 398.79	$ 23.09		1,848.36	4,176.59	0.0053%
1/1/14	$ 358.69	$ 22.39		1,782.59	4,103.88	0.0008%
2/1/14	$ 362.10	$ 24.73		1,859.45	4,308.12	0.0036%
3/1/14	$ 336.37	$ 23.25		1,872.34	4,198.99	0.0023%
4/1/14	$ 304.13	$ 21.81		1,883.95	4,114.56	0.0017%
5/1/14	$ 312.55	$ 21.35		1,923.57	4,242.62	0.0025%
6/1/14	$ 324.78	$ 21.07		1,960.23	4,408.18	0.0017%
7/1/14	$ 312.99	$ 22.23		1,930.67	4,369.77	0.0015%
8/1/14	$ 339.04	$ 23.36		2,003.37	4,580.27	0.0015%
9/1/14	$ 322.44	$ 23.83		1,972.29	4,493.39	0.0011%
10/1/14	$ 305.46	$ 22.10		2,018.05	4,630.74	0.0003%
11/1/14	$ 338.64	$ 23.10		2,067.56	4,791.63	0.0004%
12/1/14	$ 310.35	$ 23.62		2,058.90	4,736.05	0.0031%
1/1/15	$ 354.53	$ 22.31		1,994.99	4,635.24	0.0004%
2/1/15	$ 380.16	$ 24.37		2,104.50	4,963.53	0.0007%
3/1/15	$ 372.10	$ 24.28		2,067.89	4,900.88	0.0021%
4/1/15	$ 421.78	$ 24.52		2,085.51	4,941.42	0.0004%
5/1/15	$ 429.23	$ 25.82		2,107.39	5,070.03	0.0003%
6/1/15	$ 434.09	$ 25.35		2,063.11	4,986.87	0.0008%
7/1/15	$ 536.15	$ 28.12		2,103.84	5,128.28	0.0048%
8/1/15	$ 512.89	$ 27.11		1,972.18	4,812.71	0.0042%
9/1/15	$ 511.89	$ 24.44		1,920.03	4,620.16	0.0004%
10/1/15	$ 625.90	$ 27.90		2,079.36	5,053.75	0.0057%
11/1/15	$ 664.80	$ 29.59		2,080.41	5,108.67	0.0142%
12/1/15	$ 675.89	$ 27.48		2,043.94	5,007.41	0.0123%
1/1/16	$ 587.00	$ 23.46		1,940.24	4,613.95	0.0250%
2/1/16	$ 552.52	$ 23.80		1,932.23	4,557.95	0.0257%
3/1/16	$ 593.64	$ 23.86		2,059.74	4,869.85	0.0161%
4/1/16	$ 659.59	$ 24.43		2,065.30	4,775.36	0.0161%
5/1/16	$ 722.79	$ 24.46		2,096.95	4,948.05	0.0236%
6/1/16	$ 715.62	$ 23.41		2,098.86	4,842.67	0.0207%
7/1/16	$ 758.81	$ 31.16		2,173.60	5,162.13	0.0200%
8/1/16	$ 769.16	$ 32.16		2,170.95	5,213.22	0.0267%
9/1/16	$ 837.31	$ 32.90		2,168.27	5,312.00	0.0217%
10/1/16	$ 789.82	$ 28.51		2,126.15	5,189.14	0.0246%
11/1/16	$ 750.57	$ 27.81		2,198.81	5,323.68	0.0390%
12/1/16	$ 768.66	$ 29.69		2,238.83	5,444.50	0.0400%
1/1/17	$ 823.48	$ 31.83		2,278.87	5,614.79	0.0417%
2/1/17	$ 845.04	$ 33.90		2,363.64	5,825.44	0.0436%
3/1/17	$ 886.54	$ 33.57		2,362.72	5,911.74	0.0615%
4/1/17	$ 924.99	$ 33.41		2,384.20	6,047.61	0.0650%
5/1/17	$ 994.62	$ 34.30		2,411.80	6,198.52	0.0792%
6/1/17	$ 968.00	$ 34.92		2,423.41	6,140.42	0.0828%
7/1/17	$ 987.78	$ 35.73		2,470.30	6,348.12	0.0878%
8/1/17	$ 980.60	$ 36.13		2,471.65	6,428.66	0.0815%
9/1/17	$ 961.35	$ 38.46		2,519.36	6,495.96	0.0857%
10/1/17	$ 1,105.28	$ 37.64		2,575.26	6,727.67	0.0936%
11/1/17	$ 1,176.75	$ 34.67		2,584.84	6,873.97	0.1032%
12/1/17	$ 1,169.47	$ 37.74		2,673.61	6,903.39	0.1129%
1/1/18	$ 1,450.89	$ 40.58		2,823.81	7,411.48	0.1192%
2/1/18	$ 1,512.45	$ 42.86		2,713.83	7,273.01	0.1348%
3/1/18	$ 1,523.61	$ 43.19		2,720.94	7,330.71	0.1354%

Daveco(a)

Division	Revenue		Competitor	Equity Beta	Tax Rate	MV Debt	MV Equity
Food	$ 15,600		Foodco	0.61	29%	$ 16.6	$ 14.4
Computers	$ 52,100		Compco	1.91	23%	$ 36.3	$ 25.2
Beer	$ 45,500		Beerco	1.04	37%	$ 176.3	$ 71.1
Publishing	$ 17,200		Pubco	0.96	40%	$ 16.2	$ 10.7
Gaming	$ 13,100		Gamco	1.01	36%	$ 15.7	$ 6.9
Total	$ 143,500

Daveco(b)

NPV

PENSKE

	12/31/17	12/31/16	12/31/15
Sales	$ 21,386,900	$ 20,118,500	$ 19,284,900
Variable Costs	$ 18,164,400	$ 17,151,900	$ 16,417,400
Gross Profit	$ 3,222,500	$ 2,966,600	$ 2,867,500
Fixed Costs	$ 2,611,100	$ 2,391,700	$ 2,301,000
EBIT	$ 611,400	$ 574,900	$ 566,500
Interest	$ 170,800	$ 136,300	$ 113,900
EBT	$ 440,600	$ 438,600	$ 452,600
Tax	$ 164,800	$ 160,700	$ 158,000
NetIncome	$ 275,800	$ 277,900	$ 294,600

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8

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A

B

C

D

Date

Amazon

E-Bay

4/1/2013

253.81

$

22.05

$

5/1/2013

269.20

$

22.77

$

6/1/2013

277.69

$

21.77

$

7/1/2013

301.22

$

21.76

$

8/1/2013

280.98

$

21.04

$

9/1/2013

312.64

$

23.48

$

10/1/2013

364.03

$

22.18

$

11/1/2013

393.62

$

21.26

$