Assumptions

Revenue Growth
Terminal Growth Rate
WACC
Income Tax
Cost of Debt
Depriciation & Amortization
Bankruptcy Cost(% of Firm Value)
Probability of Distrees
CAPEX (% of Revenue)
CNWC (% of Revenue)
Operating Expenses

10%
3%
11.41%
30%
10.00%
9,943 per year
25%
10%
18.00%
6.00%
40.00%

Selling & Adminstration Expense

15.00%
2004
(31/30/1997)
0

Sales
Less: Operating Expenses
Less: Depreciation & Amortization
Less: Sell. Gen. & & Admin. Exp.
EBIT
Less: Interest Expense
EBT
Less: Corporate Tax
NOPAT
Plus: Depreciation & Amortization
Less/ Add: Change in NWC
Less: Capital Expenditure
FCFF
PV of FCFF
Enterprise Value
Add:Cah and Marketable Securities
Less: Interest Bearing Debt
Less: Bankruptcy Cost
Equity Value
Total number of shares Outstanding
Value per Share

113,459

165789.6502
$10,595
23900.00
4144.74
$148,339,908.96
12462000
$11.90

2005
Projected
0.25
124804.90
49921.96
9943.00
18720.74
46219.21
2390.00
43829.21
13148.76
30680.44
9943.00
7488.29
22464.882
10670.27
10385.90304

2006
Projected
1.25
137285.39
54914.16
9943.00
20592.81
51835.43
2390.00
49445.43
14833.63
34611.80
9943.00
8237.12
24711.3702
11606.30
10140.01817

Skewness
Kurtosis
Minimum
Maximum

2007
Projected
2.25
151013.93
60405.57
9943.00
22652.09
58013.27
2390.00
55623.27
16686.98
38936.29
9943.00
9060.84
27182.50722
12635.94
9908.965668

(in $ 000s)
2008
2009
Projected
Projected Terminal Value
3.25
4.25
4.25
166115.32
182726.85
66446.13
73090.74
9943.00
9943.00
24917.30
27409.03
64808.89
72284.08
2390.00
2390.00
62418.89
69894.08
18725.67
20968.23
43693.23
48925.86
9943.00
9943.00
9966.92
10963.61
29900.75794 32890.83374
13768.55
15014.41
9691.357464 9485.945996
116177.4599

Forecast: Value per Share

Statistic
Forecast values
Trials
10,000
Mean
$12.01
Median
$11.96
Mode
'--Standard Deviation
$2.66

Risk free Rate

Market Return
Beta
Cost of Equity
Cost of Debt
After Tax cost of debt
Weight ot Debt
Weight of Equity
Total Debt
Total Market Value of Equity
Total Value(Debt+ Equity)
Income Tax
WACC

Variance
Skewness
Kurtosis
Coeff. of Variability
Minimum
Maximum
Mean Std. Error

$7.05
0.1762
2.89
0.2211
$4.03
$23.11
$0.03

5.00%
12%
1.25
13.75%
10.00%
7.00%
0.34624634
0.65375366
23900
45126
69026
30%
11.41%

IPO
Assumptions
Revenue Growth
Terminal Growth Rate
WACC
Income Tax
Cost of Debt
Depriciation & Amortization
Bankruptcy Cost(% of Firm Value)
Probability of Distrees
CAPEX (% of Revenue)
CNWC (% of Revenue)
Operating Expenses
Selling & Adminstration Expense
Flotation Cost

Sales
Less: Operating Expenses
Less: Depreciation & Amortization
Less: Sell. Gen. & & Admin. Exp.
EBIT
Less: Interest Expense
EBT
Less: Corporate Tax
NOPAT
Plus: Depreciation & Amortization
Less/ Add: Change in NWC
Less: Capital Expenditure
FCFF
PV of FCFF
Enterprise Value
Add:Cah and Marketable Securities
Less: Interest Bearing Debt
Less: Bankruptcy Cost
Flotation Cost
Equity Value
Total number of shares Outstanding
Value per Share

Forecast: Value per Share

Statistic
Trials

15%
3%
11.94%
30%
10.00%
9,943 per year
25%
5%
18.00%
6.00%
40.00%
15.00%
1224.00
2004
(31/30/1997)
0
113,459

186828.2959
$44,795
23900.00
2335.35
1224.00
$205,387,942.21
15862000
$12.95

Forecast values
10,000

2005
Projected
0.25
130477.85
52191.14
9943.00
19571.68
48772.03
2390.00
46382.03
13914.61
32467.42
9943.00
7828.67
23486.013
11095.74
10787.22897

1
2
3
4

2006
Projected
1.25
150049.53
60019.81
9943.00
22507.43
57579.29
2390.00
55189.29
16556.79
38632.50
9943.00
9002.97
27008.91495
12563.61
10911.46279

Mean
Median
Mode
Standard Deviation
Variance
Skewness
Kurtosis
Coeff. of Variability
Minimum
Maximum
Mean Std. Error

$12.00
$11.93
'--$2.64
$6.98
0.1864
2.92
0.2202
$3.54
$23.41
$0.03

IPO
Before
Debt
Equity
Debt Ratio
Equity Ratio

23900
45126
35%
65%

Debt
Equity
Debt Ratio
Equity Ratio
No. of Shares

After
23900
(45126+61200)

(12462000+3400000)
No. of New Shares Issued 6.8 million @ $9

Raise $61200( 9*6800) from IPO

At Share Price of $9 each
Repay 3400 shares of Hogg Robinson and Sabre at $9 each by the amount of $30600
Use remaining proceeds of 30600(61200-30600) in expansion

2007
Projected
2.25
172556.96
69022.78
9943.00
25883.54
67707.63
2390.00
65317.63
19595.29
45722.34
9943.00
10353.42
31060.25219
14251.67
11057.29458

(in $ 000s)
2008
2009
Projected
Projected Terminal Value
3.25
4.25
4.25
198440.50
228206.58
79376.20
91282.63
9943.00
9943.00
29766.08
34230.99
79355.23
92749.96
2390.00
2390.00
76965.23
90359.96
23089.57
27107.99
53875.66
63251.97
9943.00
9943.00
11906.43
13692.39
35719.29002 41077.18352
16192.94
18425.39
11223.37326 11408.51787
131440.4184

After
23900
106326
18%
82%
15862000

ares Issued 6.8 million @ $9

Risk free Rate

Market Return
Beta
Cost of Equity
Cost of Debt
After Tax cost of debt
Weight ot Debt
Weight of Equity
Total Debt
Total Market Value of Equity
Total Value(Debt+ Equity)
Income Tax
WACC

5.00%
12%
1.15
13.05%
10.00%
7.00%
0.1835271
0.8164729
23900
106326
130226
30%
11.94%

Debt
Assumptions
Revenue Growth
Terminal Growth Rate
WACC
Income Tax
Cost of Debt
Depriciation & Amortization
Bankruptcy Cost(% of Firm Value)
Probability of Distrees
CAPEX (% of Revenue)
CNWC (% of Revenue)
Operating Expenses
Selling & Adminstration Expense
Flotation Cost

Sales
Less: Operating Expenses
Less: Depreciation & Amortization
Less: Sell. Gen. & & Admin. Exp.
EBIT
Less: Interest Expense
EBT
Less: Corporate Tax
NOPAT
Plus: Depreciation & Amortization
Less/ Add: Change in NWC
Less: Capital Expenditure
FCFF
PV of FCFF
Enterprise Value
Add:Cah and Marketable Securities
Less: Interest Bearing Debt
Less: Bankruptcy Cost
Flotation Cost
Equity Value
Total number of shares Outstanding
Value per Share

Forecast: Value per Share

Statistic
Trials

15%
3%
10.28%
30%
11.00%
9,943 per year
25%
50%
18.00%
6.00%
40.00%
15.00%
1224.00
2004
(31/30/1997)
0
113,459

163996.6508
$44,795
85100.00
20499.58
1224.00
$103,192,069.48
9062000
$11.39

Forecast values
10,000

2005
Projected
0.25
130477.85
52191.14
9943.00
19571.68
48772.03
9361.00
39411.03
11823.31
27587.72
9943.00
7828.67
23486.013
6216.04
6065.820071

2006
Projected
1.25
150049.53
60019.81
9943.00
22507.43
57579.29
9361.00
48218.29
14465.49
33752.80
9943.00
9002.97
27008.91495
7683.91
6799.258933

Mean
Median
Mode
Standard Deviation
Variance
Skewness
Kurtosis
Coeff. of Variability
Minimum
Maximum
Mean Std. Error

$13.00
$12.92
'--$2.49
$6.19
0.1676
2.93
0.1915
$5.20
$22.92
$0.02

Debt
Before
Debt
Equity
Debt Ratio
Equity Ratio

23900
45126
35%
65%

Debt
Equity
Debt Ratio
Equity Ratio
No. of Shares

After
(23900+61200)
45126

(12462000-3400000)

1 Raise $61200 through debt issuance

2 Repay 3400 shares of Hogg Robinson and Sabre at $11 each by the amount of $37400
3 Use remaining proceeds of 23800(61200-37400) in expansion

(in $ 000s)
2007
Projected
2.25
172556.96
69022.78
9943.00
25883.54
67707.63
9361.00
58346.63
17503.99
40842.64
9943.00
10353.42
31060.25219
9371.97
7519.920797

2008
2009
Projected
Projected Terminal Value
3.25
4.25
4.25
198440.50
228206.58
79376.20
91282.63
9943.00
9943.00
29766.08
34230.99
79355.23
92749.96
9361.00
9361.00
69994.23
83388.96
20998.27
25016.69
48995.96
58372.27
9943.00
9943.00
11906.43
13692.39
35719.29002 41077.18352
11313.24
13545.69
8231.376054 8936.964108
126443.3109

After
85100
45126
65%
35%
9062000

y the amount of $37400

Risk free Rate

Market Return
Beta
Cost of Equity
Cost of Debt
After Tax cost of debt
Weight ot Debt
Weight of Equity
Total Debt
Total Market Value of Equity
Total Value(Debt+ Equity)
Income Tax
WACC

5.00%
12%
1.45
15.15%
11.00%
7.70%
0.65347934
0.34652066
85100
45126
130226
30%
10.28%

Private Placemen
Assumptions
Revenue Growth
Terminal Growth Rate
WACC
Income Tax
Cost of Debt
Depriciation & Amortization
Bankruptcy Cost(% of Firm Value)
Probability of Distrees
CAPEX (% of Revenue)
CNWC (% of Revenue)
Operating Expenses

15%
3%
12.04%
30%
10.00%
9,943 per year
25%
5%
18.00%
6.00%
40.00%

Selling & Adminstration Expense

Flotation Cost

15.00%
612.00
2004
(31/30/1997)
0

Sales
Less: Operating Expenses
Less: Depreciation & Amortization
Less: Sell. Gen. & & Admin. Exp.
EBIT
Less: Interest Expense
EBT
Less: Corporate Tax
NOPAT
Plus: Depreciation & Amortization
Less/ Add: Change in NWC
Less: Capital Expenditure
FCFF
PV of FCFF
Enterprise Value
Add:Cah and Marketable Securities
Less: Interest Bearing Debt
Less: Bankruptcy Cost
Flotation Cost
Equity Value
Total number of shares Outstanding
Value per Share

Forecast: Value per Share

Statistic
Trials

113,459

184769.438
$47,995
23900.00
2309.62
612.00
$206,554,820.02
15862000
$13.02

Forecast values
10,000

2005
Projected
0.25
130477.85
52191.14
9943.00
19571.68
48772.03
2390.00
46382.03
13914.61
32467.42
9943.00
7828.67
23486.013
11095.74
10784.82116

1
2
3
4

2006
Projected
1.25
150049.53
60019.81
9943.00
22507.43
57579.29
2390.00
55189.29
16556.79
38632.50
9943.00
9002.97
27008.91495
12563.61
10899.29053

Mean
Median
Mode
Standard Deviation
Variance
Skewness
Kurtosis
Coeff. of Variability
Minimum
Maximum
Mean Std. Error

$13.06
$12.98
'--$2.46
$6.05
0.2122
2.99
0.1884
$5.76
$23.02
$0.02

Private Placement
Before
Debt
Equity
Debt Ratio
Equity Ratio

23900
45126
35%
65%

Debt
Equity
Debt Ratio
Equity Ratio
No. of Shares

After
23900
(45126+74800)

(12462000+3400000)
No. of New Shares Issued 6.8 million @ $11

Raise $74800( 11*6800) from IPO

At Share Price of $11 each
Repay 3400 shares of Hogg Robinson and Sabre at $11 each by the amount of $37400
Use remaining proceeds of 37400(74800-37400) in expansion

2007
Projected
2.25
172556.96
69022.78
9943.00
25883.54
67707.63
2390.00
65317.63
19595.29
45722.34
9943.00
10353.42
31060.25219
14251.67
11035.10159

(in $ 000s)
2008
2009
Projected
Projected Terminal Value
3.25
4.25
4.25
198440.50
228206.58
79376.20
91282.63
9943.00
9943.00
29766.08
34230.99
79355.23
92749.96
2390.00
2390.00
76965.23
90359.96
23089.57
27107.99
53875.66
63251.97
9943.00
9943.00
11906.43
13692.39
35719.29002 41077.18352
16192.94
18425.39
11190.84974 11365.3048
129494.0702

After
23900
119926
17%
83%
15862000

ares Issued 6.8 million @ $11

Risk free Rate

Market Return
Beta
Cost of Equity
Cost of Debt
After Tax cost of debt
Weight ot Debt
Weight of Equity
Total Debt
Total Market Value of Equity
Total Value(Debt+ Equity)
Income Tax
WACC

5.00%
12%
1.15
13.05%
10.00%
7.00%
0.16617301
0.83382699
23900
119926
143826
30%
12.04%

IPO (waiting)
Assumptions
Revenue Growth
Terminal Growth Rate
WACC
Income Tax
Cost of Debt
Depriciation & Amortization
Bankruptcy Cost(% of Firm Value)
Probability of Distrees
CAPEX (% of Revenue)
CNWC (% of Revenue)
Operating Expenses
Selling & Adminstration Expense
Flotation Cost

Sales
Less: Operating Expenses
Less: Depreciation & Amortization
Less: Sell. Gen. & & Admin. Exp.
EBIT
Less: Interest Expense
EBT
Less: Corporate Tax
NOPAT
Plus: Depreciation & Amortization
Less/ Add: Change in NWC
Less: Capital Expenditure
FCFF
PV of FCFF
Enterprise Value
Add:Cah and Marketable Securities
Less: Interest Bearing Debt
Less: Bankruptcy Cost
Flotation Cost
Equity Value
Total number of shares Outstanding
Value per Share

Forecast: Value per Share

Statistic
Trials

15%
3%
11.94%
30%
10.00%
9,943 per year
25%
5%
18.00%
6.00%
40.00%
15.00%
1224.00
2004
(31/30/1997)
0
113,459

292178.1847
$44,795
23900.00
3652.23
1224.00
$309,420,957.43
15862000
$19.51

Forecast values
10,000

2005
Projected
0.25
130477.85
52191.14
9943.00
19571.68
48772.03
2390.00
46382.03
13914.61
32467.42
9943.00
7828.67
23486.013
11095.74
10787.22897

2006
Projected
1.25
150049.53
60019.81
9943.00
22507.43
57579.29
2390.00
55189.29
16556.79
38632.50
9943.00
9002.97
27008.91495
12563.61
10911.46279

Mean
Median
Mode
Standard Deviation
Variance
Skewness
Kurtosis
Coeff. of Variability
Minimum
Maximum
Mean Std. Error

$19.63
$19.53
'--$2.50
$6.27
0.183
2.91
0.1275
$11.98
$29.67
$0.03

IPO (waiting)
Before
Debt
Equity
Debt Ratio
Equity Ratio

23900
45126
35%
65%

Debt
Equity
Debt Ratio
Equity Ratio
No. of Shares

After
23900
(45126+61200)

(12462000+3400000)
No. of New Shares Issued 6.8 million @ $9

(in $ 000s)
2007
Projected
2.25
172556.96
69022.78
9943.00
25883.54
67707.63
2390.00
65317.63
19595.29
45722.34
9943.00
10353.42
31060.25219
14251.67
11057.29458

2008
2009
Projected
Projected Terminal Value
3.25
4.25
4.25
198440.50
228206.58
79376.20
91282.63
9943.00
9943.00
29766.08
34230.99
79355.23
92749.96
2390.00
2390.00
76965.23
90359.96
23089.57
27107.99
53875.66
63251.97
9943.00
9943.00
11906.43
13692.39
35719.29002 41077.18352
16192.94
18425.39
11223.37326 11408.51787
131440.4184

After

Option Pricing
23900
106326
18%
82%
15862000

Current Asset Value

Exercise (Strike) Price
Time to Maturity (Years)
Riskless Interest Rate (% p.a.)
Volatility (% p.a.)

ares Issued 6.8 million @ $9

S
X
T
rf
s

Call Value ($)

Risk free Rate

Market Return
Beta
Cost of Equity
Cost of Debt
After Tax cost of debt
Weight ot Debt
Weight of Equity
Total Debt
Total Market Value of Equity
Total Value(Debt+ Equity)
Income Tax
WACC

5.00%
12%
1.15
13.05%
10.00%
7.00%
0.1835271
0.8164729
23900
106326
130226
30%
11.94%

165789.65
61200
0.25
0.05
0.05
105349.889

Option Pricing
d1
d2
N(d1)
N(d2)

40.37541
40.35041
1
1