NewFangled Sports Products, Inc.
Valuation of Stock
Value of Stock Based on Dividend Payments
Projected
FYE FYE FYE FYE FYE Terminal
Current Year CY+1 CY+2 CY+3 CY+4 Year
Expected Dividend Payment Per Share $1.00 $1.10 $1.15 $1.20 $1.30 $1.40
Discount Period in Years 0.00 1.00 2.00 3.00 4.00
Present Value – Cash Flow/Terminal Value $1.00 $0.99 $0.93 $0.87 $0.85 $12.72
Net Present Value $17.36 $5
Notes:
(a)
Reflects end-of-year discounting convention.
Based upon the Cost of Equity Capital as reported in Ibbotson’s Cost of Capital Yearbook (data through June 2012) for SIC 3949.
Terminal Value = (Terminal Year Cash Flow / (Discount Rate – Perpetual Growth Rate))
Workpaper I
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Present Value Factors
Valuation Date
First Year of Projections
Projected
Stub period #REF! #REF! #REF! #REF! #REF! #REF!
#REF! #REF! #REF! #REF! #REF! #REF!
Days in year 364 365 365 365 364
Stub 364 729 1,094 1,459 1,823
Divided by 2 (mid-period) 182 546.5 911.5 1276.5 1640.5
Over 365 (Discount period) 0.4986 1.4973 2.5 3.5 4.5
Discount rate
Discount factor
0.9484 0.8530 0.7671 0.6899 0.6206
Workpaper
#REF!
#REF! DRAFT
Sensitivity Table
NewFangled Sports Products, Inc.
Valuation of Stock
Value of Stock Based on Dividend Payments
Projected
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Current Year CY+1 CY+2 CY+3 CY+4 CY+5 CY+6 CY+7 CY+8 CY+9 CY+10 CY+11 CY+12 CY+13 CY+14 CY+15
Expected Dividend Payment Per Share $1.00 $1.03 $1.06 $1.09 $1.13 $1.16 $1.19 $1.23 $1.27 $1.30 $1.34 $1.38 $1.43 $1.47 $1.51 $1.56
Discount Period in Years 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00
Present Value – Cash Flow/Terminal Value $1.00 $0.92 $0.85 $0.78 $0.72 $0.66 $0.60 $0.56 $0.51 $0.47 $0.43 $0.40 $0.37 $0.34 $0.31 $0.28
Net Present Value $9.19 $9
Notes:
(a)
Reflects end-of-year discounting convention.
(b)
Based upon the Cost of Equity Capital as reported in Ibbotson’s Cost of Capital Yearbook (data through June 2006) for SIC 3949.
Workpaper I
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Present Value Factors
Valuation Date
First Year of Projections
Projected
Stub period #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!
#REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!
Days in year 364 365 365 365 365 365 365 365 365 365 365 365 365 365 365 364
Stub 364 729 1,094 1,459 1,824 2,189 2,554 2,919 3,284 3,649 4,014 4,379 4,744 5,109 5,474 5,838
Prior period 0 364 729 1,094 1,459 1,824 2,189 2,554 2,919 3,284 3,649 4,014 4,379 4,744 5,109 1,458
Divided by 2 (mid-period) 182 546.5 911.5 1276.5 1641.5 2006.5 2371.5 2736.5 3101.5 3466.5 3831.5 4196.5 4561.5 4926.5 5291.5 3648
Over 365 (Discount period) 0.4986 1.4973 2.5 3.5 4.5 5.5 6.5 7.5 8.5 9.5 10.5 11.5 12.5 13.5 14.5 10.0
Discount rate
Workpaper
#REF!
#REF! DRAFT
Sensitivity Table
Discount Rates
15.0% 16.0% 17.0% 18.0% 19.0% 20.0%
Growth Rates 2.0% $2,451 $2,231 $2,042 $1,877 $1,732 $1,605
2.5% $2,526 $2,293 $2,094 $1,921 $1,770 $1,636
3.0% $2,607 $2,360 $2,149 $1,967 $1,809 $1,670
3.5% $2,695 $2,431 $2,208 $2,017 $1,851 $1,706
4.0% $2,791 $2,509 $2,272 $2,070 $1,896 $1,744
NewFangled Sports Products, Inc.
Valuation of Stock
Value of Stock Based on Dividend Payments
Projected
FYE Terminal
Current Year Year
Expected Dividend Payment Per Share $1.00 $1.03
Discount Period in Years 0.00
Present Value – Cash Flow/Terminal Value $1.00 $11.44
Net Present Value $12.44
Notes:
(a)
Reflects end-of-year discounting convention.
(b)
Based upon the Cost of Equity Capital as reported in Ibbotson’s Cost of Capital Yearbook (data through June 2006) for SIC 3949.
(c)
Terminal Value = (Terminal Year Cash Flow / (Discount Rate – Perpetual Growth Rate))
Workpaper I
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Present Value Factors
Valuation Date
First Year of Projections
Projected
Stub period #REF!
#REF!
Days in year 364 #REF!
#REF!
Prior period 0
Divided by 2 (mid-period) 182
Over 365 (Discount period) 0.4986
Discount rate
Workpaper
#REF!
#REF! DRAFT
Sensitivity Table
Discount Rates
15.0% 16.0% 17.0% 18.0% 19.0% 20.0%
Growth Rates 2.0% $2,451 $2,231 $2,042 $1,877 $1,732 $1,605
2.5% $2,526 $2,293 $2,094 $1,921 $1,770 $1,636
3.0% $2,607 $2,360 $2,149 $1,967 $1,809 $1,670
3.5% $2,695 $2,431 $2,208 $2,017 $1,851 $1,706
4.0% $2,791 $2,509 $2,272 $2,070 $1,896 $1,744
Minor League Hockey
Valuation of Stock
Value of Stock Based on Dividend Payments
Projected
FYE FYE FYE Terminal
Current Year CY+1 CY+2 Year
Free Cash Flows
$5,000,000 $10,000,000 $20,000,000 $21,200,000
Discount Period in Years 0.00 1.00 2.00
Present Value – Cash Flow/Terminal Value $5,000,000 $9,090,909 $16,528,926 $398,196,844
Net Present Value $428,816,679 $30,619,835
Amount of Debt $40,000,000
NPV including Debt $388,816,679
Number of Shares 10,000,000
Price Per Share $39
Notes:
(a)
Reflects end-of-year discounting convention.
(b)
(c)
Terminal Value = (Terminal Year Cash Flow / (Discount Rate – Perpetual Growth Rate))
Workpaper I
#
##REF!
Present Value Factors
Valuation Date
First Year of Projections
Projected
Stub period #REF! #REF! #REF! #REF!
#REF! #REF! #REF! #REF!
Days in year 364 365 364
Stub 364 729 1,093
Prior period 0364 #REF!
Divided by 2 (mid-period) 182 546.5 #REF!
Over 365 (Discount period) 0.4986 1.4973 #REF!
Discount rate
Workpaper
#REF!
#REF! DRAFT
Sensitivity Table
Discount Rates
15.0% 16.0% 17.0% 18.0% 19.0% 20.0%
Growth Rates 2.0% $2,451 $2,231 $2,042 $1,877 $1,732 $1,605
2.5% $2,526 $2,293 $2,094 $1,921 $1,770 $1,636
3.0% $2,607 $2,360 $2,149 $1,967 $1,809 $1,670
3.5% $2,695 $2,431 $2,208 $2,017 $1,851 $1,706
4.0% $2,791 $2,509 $2,272 $2,070 $1,896 $1,744