THIS CASE IS BASED ON VALUING THE SILNA’S SHARES AS OF THE NEW 2007 TELEVISION DEAL.
$s in thousands
07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 Year
Revenue $15,600 $18,900 $18,900 $18,900 $18,900 $18,900 $18,900 $18,900 $18,900 $19,307 2.2%
Net Cash Flow $10,140 $12,285 $12,285 $12,285 $12,285 $12,285 $12,285 $12,285 $12,285 $12,550
Note
(a)
From Rovell (2007) and Pells (2007)
Projected (a)
07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 Year
Net Cash Flow $10,140 $12,285 $12,285 $12,285 $12,285 $12,285 $12,285 $12,285 $12,285 $12,550
Discount Period in Years 1 2 3 4 5 6 7 8 9
Discount Factor 0.8890 0.7904 0.7027 0.6247 0.5554 0.4938 0.4390 0.3903 0.3470 0.3470
(b)
Terminal Value $121,547
Present Value Cash Flow $9,014.94 $9,710.12 $8,632.75 $7,674.92 $6,823.37 $6,066.29 $5,393.22 $4,794.82 $4,262.82 $42,176.22
Total Present Value $104,549.47
Note
(b)
From Ibbotson’s report on SIC 794 (Commercial Sports). Based on six companies in that industry, Ibbotson calculates that the median cost of equity capital is 12.48%
Projected
THIS CASE IS BASED ON VALUING THE SILNA’S SHARES AS OF THE NEW 2007 TELEVISION DEAL.
$s in thousands Season Season Season Season Season Season Season Season Season Terminal
16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 Year
Revenue $50,857 $50,857 $50,857 $50,857 $50,857 $50,857 $50,857 $50,857 $50,857 $52,383 3.0%
Growth 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 3.0%
Net Cash Flow $33,057 $33,057 $33,057 $33,057 $33,057 $33,057 $33,057 $33,057 $33,057 $34,049
Note From Rovell (2007) and Pells (2007)
Season Season Season Season Season Season Season Season Season Terminal
16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 Year
Net Cash Flow $33,057 $33,057 $33,057 $33,057 $33,057 $33,057 $33,057 $33,057 $33,057 $34,049
Discount Period in Years 1 2 3 4 5 6 7 8 9
(b)
Total Present Value $499,357.90
Note
(b)
From Ibbotson’s report on SIC 794 (Commercial Sports). Based on six companies in that industry, Ibbotson calculates that the median cost of equity capital is 12.48%