Valuation
Measuring and Managing the Value of Companies
5th Edition
Chapter 9 Solutions
Forecasting Performance
Version 1.0
April 1, 2010
Chapter 9
Question 1
Procter & Gamble
Annual report, 2009
Note 3
Supplemental financial information
Selected components of current and noncurrent liabilities were as
follows:
Accrued and other liabilities—current
Consolidated statements of earnings Gille.e exit costs (primarily severance costs) are a restructuring charge and
not be forecasted within free cash :ow, and therefore should not be
Ratio analysis included in accrued and other liabilities.
2009 2008
Chapter 9
Questions 2–4
PartsCo PartsCo
Income statement Financial ratio analysis
Prior Current Forecast Prior Current Forecast
$ million year year year Percent of sales year year year
PartsCo PartsCo
Balance sheet Financial ratio analysis
Prior Current Forecast Prior Current Forecast
$ million year year year Days in revenue (or cost of sales) year year year
Liabilities and equity Liabilities and equity
Chapter 9
Questions 2-4
PartsCo PartsCo
Income statement Financial ratio analysis
Prior Current Forecast Prior Current Forecast
$ million Year Year Year Percent of sales Year Year Year
PartsCo PartsCo
Balance sheet Financial ratio analysis
Prior Current Forecast Prior Current Forecast
$ million Year Year Year Days in revenue (or cost of sales) Year Year Year
Liabilities and equity Liabilities and equity
Long-term debt ($ million) 170.0 260.0 260.0
Chapter 9
Question 6
10-Year Treasury in0ation-indexed security, constant maturity Implied in0ation rate
Frequency: Monthly
Units: Percent
Date range: 2003-01-01 to 2010-02-01
Last updated: 2010-03-02 9:31 AM CST
Notes: For further information regarding Treasury constant maturity data,
please refer to
www.federalreserve.gov/releases/h15/current/h15.pdf and
www.treas.gov/oLces/domestic-?nance/debt-management/interest-rate/index.html.
Date Value
Source: h.p://research.stlouisfed.org/fred2/series/FII10/downloaddata?cid=115.
10-Year Treasury constant maturity rate
Series ID: GS10
Source: Board of Governors of the Federal Reserve System
Release: H.15 Selected Interest Rates
Seasonal Adjustme
Not applicable
Frequency: Monthly
Units: Percent
Date Range: 1953-04-01 to 2010-02-01
Last Updated: 2010-03-02 9:31 AM CST
Notes: Averages of business days. For further information regarding Treasury
constant maturity data, please refer to
www.federalreserve.gov/releases/h15/current/h15.pdf and
www.treas.gov/oLces/domestic-?nance/debt-management/interest-rate/index.html.
Date Value
Source: h.p://research.stlouisfed.org/fred2/series/GS10/downloaddata?cid=115.
$ million
Prior Current Prior Current
Income statement year year Balance sheet year year
Property and equipment 626.1 720.0
EXHIBIT 9.14PartsCo: Consolidated Financial Statements