California Pizza(MBA案例)全英文版.ppt

FinancialSuggestiontoCPK  Group-8  Introduction of CPK Financial Analysis of CPK Sensitivity Analysis Conclusion Suggestions C NTENT Part One Introduction of CPK Introduction of CPK Founded by Larry Flax and Rick Rosenfield in Beverly Hills, California in 1985 Casual dining industry 213 stores in 28 states in US and 6 foreign countries by the end of second quarter of 2007 Industrial Status of CPK Financial Status of CPK Full-service Limited-service Profit over $6 million Strong revenue growth with over 5% Strong balanced Business Structure Operation Challenges Recent Financial Status in July 2007 Revenue Composition Part Two Financial Analysis of CPK The Questions of CPK 1 2 What is the financial status if CPK choose to raise money to proceed this repurchase program when it has little excess cash? Analysis Introduction ROE Share Price ROE Analysis 　Debt/ TTL Capital Actual 10% 20% 30% 　 　 　 　 　 Interest rate 6.16% 6.16% 6.16% 6.16% Tax rate 32.5% 32.5% 32.5% 32.5% 　 　 　 　 　 Earnings before income taxes and interest(2) 30,054 30,054 30,054 30,054 Interest expense 0 1,391 2,783 4,174 Earnings before taxes 30,054 28,663 27,271 25,880 Income taxes 9,755 9,303 8,852 8,400 Net income 20,299 19,359 18,419 17,480 　 　 　 　 　 Book value: 　 　 　 　 Debt 0 22,589 45,178 67,766 Equity 225,888 203,299 180,710 158,122 Total capital 225,888 225,888 225,888 225,888 　 　 　 　 　 Return on equity 9.0% 9.5% 10.2% 11.1% 　 　 　 　 　 Market value: 　 　 　 　 Debt 0 22,589 45,178 67,766 Equity 643,773 628,516 613,259 598,002 Market value of capital 643,773 651,105 658,437 665,769 Market value of Debt/MV of Capital 0% 3% 7% 10% ROE 9% 10% 10% 11% ROE grows as the debt/TTL capital increase WACC Analysis Debt/TTL Capital Actual 10% 20% 30% bu 0.85 0.85 0.85 0.85 Tax rate 32.5% 32.5% 32.5% 32.5% Market value: 　 　 　 　 Debt 0 22,589 45,178 67,766 Equity 643,773 628,516 613,259 598,002 Market value of capital 643,773 651,105 658,437 665,769 bL 0.85 0.87 0.89 0.92 WA