The Proposed Structure of the Transaction

I have calculated the WACC and the valuation of the target company. Explain how the company would execute the takeover in practice (that is, how Woolworths would secure ownership of the target company’s shares);
Assess the approximate cost of the acquisition (that is, the takeover amount) based on your DCF valuation.
600 words
ATTACHED FILE(S)
Income statement
Kogan Income statement from 2017 to 2021
Income statement
Balance Date 06/31/2017 06/31/2018 06/31/2019 06/31/2020 06/31/2021
Reporting Currency AUD AUD AUD AUD AUD
Operating Revenue 286,468,873.00 408,871,355.00 432,565,811.00 492,060,000.00 775,393,000.00
Other Revenue 3,048,907.00 4,741,013.00 6,133,775.00 5,844,000.00 6,795,000.00
Total Revenue Excluding Interest 289,517,780.00 413,612,368.00 438,699,586.00 497,904,000.00 782,188,000.00
Operating Expenses -280,313,959.00 -390,330,566.00 -408,157,431.00 -450,888,000.00 -758,265,000.00
EBITDA 9,203,821.00 23,281,802.00 30,542,155.00 47,016,000.00 23,923,000.00
Depreciation -3,823,701.00 -244,948.00 -799,769.00 -1,947,000.00 -10,940,000.00
Amortisation 0.00 -1,756,332.00 -5,939,641.00 -5,472,000.00 0.00
Depreciation and Amortisation -3,823,701.00 -2,001,280.00 -6,739,410.00 -7,419,000.00 -10,940,000.00
EBIT 5,380,120.00 21,280,522.00 23,802,745.00 39,597,000.00 12,983,000.00
Interest Revenue 469,845.00 309,384.00 195,119.00 52,000.00 25,000.00
Interest Expense -124,694.00 -582,695.00 -594,435.00 -796,000.00 -938,000.00
Net Interest Expense 345,151.00 -273,311.00 -399,316.00 -744,000.00 -913,000.00
PreTax Profit 5,725,271.00 21,007,211.00 23,403,429.00 38,853,000.00 12,070,000.00
Tax Expense -2,384,500.00 -6,896,218.00 -6,202,203.00 -12,033,000.00 -7,731,000.00
Net Profit after Tax Before Abnormals 3,340,771.00 14,110,993.00 17,201,226.00 26,820,000.00 4,339,000.00
Abnormals 399,094.00 0.00 0.00 0.00 -802,000.00
Abnormals Tax 0.00 0.00 0.00 0.00 0.00
Net Abnormals 399,094.00 0.00 0.00 0.00 -802,000.00
Reported NPAT After Abnormals 3,739,865.00 14,110,993.00 17,201,226.00 26,820,000.00 3,537,000.00
Outside Equity Interests 0.00 0.00 0.00 0.00 0.00
Shares Outstanding at Period End 93,336,581.00 93,472,345.00 93,729,852.00 103,531,706.00 106,561,563.00
Weighted Average Number of Shares 91,801,537.00 93,466,568.00 93,712,226.00 94,027,393.00 106,561,563.00
EPS Adjusted (cents/share) 3.64 15.10 18.36 28.00 4.07
EPS After Abnormals (cents/share) 4.07 15.10 18.36 28.00 3.32
Operating Rev. 1 Year (%) — 42.73 5.80 13.75 57.58
Operating Rev. 3 Year (%) — — — 19.76 23.78
due to COVID-19, most people choose online shopping
Operating Exp. 1 Year (%) — 39.25 4.57 10.47 68.17
Operating Exp. 3 Year (%) — — — 17.17 24.78
other revenue 36% 23% -5%
depreciation/sales -1.33% -0.06% -0.18% -0.40% -1.41%
-7.8134854467 -0.5454343024 -0.5106465439 -0.7479830964
Amortisation/sales 0.00% -0.43% -1.37% -1.11%
0% -27% -102% -66%
operating expense/sales -98% -95% -94% -92%
interest revenue 0.16% 0.08% 0.05% 0.01% 0.003%
interest expense/sales -0.04% -0.14% -0.14% -0.16%
other revenue change
3048907 4741013 6133775 5844000 6795000
WACC
WACC (Next Five Years) WACC (2017-2021)
Years 6/30/2022 6/30/2023 6/30/2024 6/30/2025 6/30/2026 6/30/2027 Years 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Average
D/V 13% 13% 13% 13% 13% 13% stock price 1.67 6.82 4.75 14.73 12.2 8.034
E/V 87% 87% 87% 87% 87% 87% volume of shares 93336581 93472345 93729852 103531706 106561563 98126409.4
Cost of equity Value of Equity 155872090 637481393 445216797 1525022029 1300051069 812728676
CAPM Value of Debt 37652171 58103415 67417416 115642000 261286000 108020200.40
Rf 3.34% 3.34% 3.34% 3.34% 3.34% 3.34% D/V 19% 8% 13% 7% 17% 13%
Rm 11.12% 11.12% 11.12% 11.12% 11.12% 11.12% E/V 81% 92% 87% 93% 83% 87%
β 1.0674 1.0674 1.0674 1.0674 1.0674 1.0674
Cost of equity 11.65% 11.65% 11.65% 11.65% 11.65% 11.65%
Cost of debt 4.3% 4.3% 4.3% 4.3% 4.3% 4.3%
Tax 30% 30% 30% 30% 30% 30%
WACC 10.53% 10.53% 10.53% 10.53% 10.53% 10.53%
beta
Adj Close Volume Monthly return Date Monthly return for S&P 500 Monthly return for Kogan Makrt Kogan Beta 1.0674
2.329866 2863281 ERROR:#REF! 1/07/2017 4125.755 2.105 -0.03% -38.55% notes that kogan‘s stock moves very similar to the stock market, but slightlyhigher exposure to systematic risk than the S&P500 index as a whole
3.197855 15075201 ERROR:#REF! 1/08/2017 4126.975 3.095 -4.94% -18.26% R2 0.0414901063
3.561153 6871289 ERROR:#REF! 1/09/2017 4336.125 3.715 -2.52% -5.37% show the accuracy of the model
3.588903 20415234 ERROR:#REF! 1/10/2017 4446.775 3.92 0.00% -4.37% correlation 0.2037
3.977392 11870350 ERROR:#REF! 1/11/2017 4446.755 4.095 -4.40% -29.95% return on themarket monthly 0.8827%
6.243581 8433605 ERROR:#REF! 1/12/2017 4646.845 5.525 -0.81% -22.95% return on themarket yearly 11.1226%
6.613572 6036051 ERROR:#REF! 1/01/2018 4684.5 6.95 2.06% -15.56%
8.361773 15453425 ERROR:#REF! 1/02/2018 4588.81 8.12 2.82% -7.47%
7.923718 9651955 ERROR:#REF! 1/03/2018 4461.27 8.75 0.97% 7.29% calcutaing cost of equity using capm
7.243211 8089263 ERROR:#REF! 1/04/2018 4418.17 8.135 -1.05% -3.74% Cost of equity = rf + beta(rm-rf)
8.473717 6821770 ERROR:#REF! 1/05/2018 4464.77 8.445 2.65% 5.91%
6.357619 21295372 ERROR:#REF! 1/06/2018 4347.995 7.96 2.11% 31.66% rf = 20 years US teasury =3.34%
4.381351 24870336 ERROR:#REF! 1/07/2018 4257.01 5.8 1.39% -1.45% beta=1.0674
6.478805 23712230 ERROR:#REF! 1/08/2018 4198.045 5.885 2.68% -8.55% calcualting beta by regression return of the firm and return for the market index
5.326798 11742667 ERROR:#REF! 1/09/2018 4086.975 6.41 4.49% 40.16% Rm=11.1226%
2.663399 22773154 ERROR:#REF! 1/10/2018 3907.7 4.29 3.56% 33.95%
3.021029 32257409 ERROR:#REF! 1/11/2018 3771.16 3.055 0.85% -9.07%
3.199844 15588930 ERROR:#REF! 1/12/2018 3739.425 3.345 1.03% -14.06% Cost of equity = 3.34%+1.0673*(11.1226%-3.34%)
4.046862 21998249 ERROR:#REF! 1/01/2019 3700.97 3.85 6.76% -9.53% 11.65%
3.849224 15630881 ERROR:#REF! 1/02/2019 3458.915 4.235 3.86% 10.31%
3.331602 16339937 ERROR:#REF! 1/03/2019 3327.915 3.82 -3.17% -18.04%
5.27033 22587718 ERROR:#REF! 1/04/2019 3435.22 4.575 1.20% -20.22%
5.342592 14112619 ERROR:#REF! 1/05/2019 3394.285 5.6 6.25% 8.86%
4.531662 17926299 ERROR:#REF! 1/06/2019 3188.52 5.125 3.80% 3.78%
4.72247 13870622 ERROR:#REF! 1/07/2019 3069.535 4.935 3.75% -11.74%
5.867311 22415206 ERROR:#REF! 1/08/2019 2956.7 5.55 8.89% -9.61%
5.875214 9695267 ERROR:#REF! 1/09/2019 2705.255 6.11 -2.71% -5.03%
6.55275 13159918 ERROR:#REF! 1/10/2019 2779.435 6.425 -10.75% -7.57%
6.804408 7940427 ERROR:#REF! 1/11/2019 3094.94 6.93 -4.43% -5.48%
7.346437 5771051 ERROR:#REF! 1/12/2019 3235.095 7.32 1.49% 13.82%
4.994415 30057629 ERROR:#REF! 1/01/2020 3187.315 6.375 2.91% 29.74%
4.316878 26192294 ERROR:#REF! 1/02/2020 3095.85 4.735 2.79% -2.71%
5.255147 30108815 ERROR:#REF! 1/03/2020 3010.625 4.865 2.28% -32.53%
7.848342 27171801 ERROR:#REF! 1/04/2020 2942.875 6.735 -0.36% -35.29%
11.030898 32355873 ERROR:#REF! 1/05/2020 2953.39 9.585 -0.76% -30.17%
14.459023 39461462 ERROR:#REF! 1/06/2020 2975.895 12.96 4.44% -19.37%
16.364628 34297009 ERROR:#REF! 1/07/2020 2846.645 15.73 -0.19% -18.31%
20.431227 38704496 ERROR:#REF! 1/08/2020 2852.195 18.8899995 -1.57% -7.62%
19.944664 32161710 ERROR:#REF! 1/09/2020 2897.23 20.385 2.83% -0.73%
20.349884 22048858 ERROR:#REF! 1/10/2020 2816.31 20.535 2.62% 10.71%
16.208746 32668498 ERROR:#REF! 1/11/2020 2743.405 18.45 5.73% 3.98%
18.778425 25826350 ERROR:#REF! 1/12/2020 2590.53 17.7299995 -2.22% -4.22%
17.780203 18682076 ERROR:#REF! 1/01/2021 2648.675 18.495 -3.35% 14.87%
13.816967 27406742 ERROR:#REF! 1/02/2021 2738.875 15.94 -2.88% 19.62%
11.860058 36311915 ERROR:#REF! 1/03/2021 2819.015 13.1 -3.02% 12.42%
11.08 44389058 ERROR:#REF! 1/04/2021 2905.47 11.57 1.53% 8.05%
10.2 40777179 ERROR:#REF! 1/05/2021 2861.345 10.675 3.58% -1.76%
11.58 27347481 ERROR:#REF! 1/06/2021 2760.62 10.865 1.54% -1.82%
10.39 27860153 ERROR:#REF! 1/07/2021 2718.535 11.065 1.65% 1.78%
11.39 32580787 ERROR:#REF! 1/08/2021 2674.115 10.87 1.26% -3.17%
10.99 19684586 ERROR:#REF! 1/09/2021 2640.75 11.22 -1.40% 7.83%
9.94 24136667 ERROR:#REF! 1/10/2021 2678.045 10.375 -3.20% 14.16%
7.99 20386243 ERROR:#REF! 1/11/2021 2765.14 9.005 0.41% 7.43%
8.82 17375414 ERROR:#REF! 1/12/2021 2753.77 8.36 3.49% 10.79%
6.19 16396360 ERROR:#REF! 1/01/2022 2659.355 7.505 1.67% 24.23%
5.49 13778031 ERROR:#REF! 1/02/2022 2615.395 5.89 2.60% 4.78%
5.69 13911725 ERROR:#REF! 1/03/2022 2548.23 5.615 2.04% 15.79%
3.91 12006594 ERROR:#REF! 1/04/2022 2496.89 4.795 0.91% 25.52%
3.58 5393293 ERROR:#REF! 1/05/2022 2474.375 3.715 0.96% 5.68%
3.43 915267 ERROR:#REF! 9/05/2022 2450.845 3.51
FCFF&NPV
FCFF of sydney Airport after 2021
Value Drivers (Assumption) 06/31/2022 06/31/2023 06/31/2024 06/31/2025 06/31/2026 06/31/2027 06/31/2028
Sales Revenue growth 20% 18% 15% 9% 6% 4% 4%
other revenue 7,000,000.00 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000 7,000,000
Cost of Goods Sold 0 0 0 0 0 0 0
depreciation/operating revenue 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
Fixed asset growth 0.4% 0.4% 0.4% 0.4% 0.4% 0.4% 0.4%
Amortisation/sales revenue 1% 1% 1% 1% 1% 1% 1%
operating expense/sales 89% 86% 85% 85% 85% 85% 85% #
Interest Received 0 0 0 0 0 0 0
Interest Expense 0.14% 0.14% 0.14% 0.14% 0.14% 0.14% 0.14%
tax rate 30% 30% 30% 30% 30% 30% 30%
dividend payout ratio 0.52 0.52 0.52 0.52 0.52 0.52 0.52
Reporting Currency AUD
Income statement (Next Five Years)
Balance Date 6/30/21 6/30/22 6/30/23 6/30/24 6/30/25 6/30/26 6/30/27 6/30/2028
Operating Revenue 775,393,000.00 930,471,600.00 1,097,956,488.00 1,262,649,961.20 1,376,288,457.71 1,458,865,765.17 1,517,220,395.78 1,577,909,211.61
Other Revenue 6,795,000.00 7,000,000.00 7,000,000.00 7,000,000.00 7,000,000.00 7,000,000.00 7,000,000.00 7,000,000.00
Total Revenue Excluding Interest 782,188,000.00 937,471,600.00 1,104,956,488.00 1,269,649,961.20 1,383,288,457.71 1,465,865,765.17 1,524,220,395.78 1,584,909,211.61
Operating Expenses 758,265,000.00 828,119,724.00 944,242,579.68 1,073,252,467.02 1,169,845,189.05 1,240,035,900.39 1,289,637,336.41 1,341,222,829.87
EBITDA 23,923,000.00 109,351,876.00 160,713,908.32 196,397,494.18 213,443,268.66 225,829,864.78 234,583,059.37 243,686,381.74
Depreciation 10,940,000.00 9,304,716.00 10,979,564.88 12,626,499.61 13,762,884.58 14,588,657.65 15,172,203.96 15,779,092.12
Amortisation 0.00 9,304,716.00 10,979,564.88 12,626,499.61 13,762,884.58 14,588,657.65 15,172,203.96 15,779,092.12
Depreciation and Amortisation 10,940,000.00 18,609,432.00 21,959,129.76 25,252,999.22 27,525,769.15 29,177,315.30 30,344,407.92 31,558,184.23
EBIT 12,983,000.00 90,742,444.00 138,754,778.56 171,144,494.96 185,917,499.50 196,652,549.47 204,238,651.45 212,128,197.51
Interest Revenue 25,000.00 – 0 – 0 – 0 – 0 – 0 – 0 – 0
Interest Expense -938,000.00 1,302,660.24 1,537,139.08 1,767,709.95 1,926,803.84 2,042,412.07 2,124,108.55 2,209,072.90
Net Interest Expense -913,000.00 1,302,660.24 1,537,139.08 1,767,709.95 1,926,803.84 2,042,412.07 2,124,108.55 2,209,072.90
PreTax Profit 12,070,000.00 89,439,783.76 137,217,639.48 169,376,785.01 183,990,695.66 194,610,137.40 202,114,542.90 209,919,124.61
Tax Expense -7,731,000.00 26,831,935.13 41,165,291.84 50,813,035.50 55,197,208.70 58,383,041.22 60,634,362.87 62,975,737.38
Net Profit after Tax 4,339,000.00 62,607,848.63 96,052,347.63 118,563,749.51 128,793,486.96 136,227,096.18 141,480,180.03 146,943,387.23
Balance sheet (Next Five Years)
Balance Date 6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025 6/30/2026 6/30/2027
CA – Cash 91,691,000.00 93,047,160.00 109,795,648.80 126,264,996.12 137,628,845.77 145,886,576.52 151,722,039.58 157,790,921.16
CA – Receivables 5,810,000.00 9,304,716.00 10,979,564.88 12,626,499.61 13,762,884.58 14,588,657.65 15,172,203.96 15,779,092.12
CA – Prepaid Expenses 1,981,000.00 2,791,414.80 3,293,869.46 3,787,949.88 4,128,865.37 4,376,597.30 4,551,661.19 4,733,727.63
CA – Inventories 227,873,000.00 232,617,900.00 175,673,038.08 202,023,993.79 137,628,845.77 145,886,576.52 151,722,039.58 157,790,921.16
CA – Investments 205,000.00 0 0 0 0 0 0 0
CA – Other 1,689,000.00 0 0 0 0 0 0 0
Total Current Assets 329,249,000.00 337,761,190.80 299,742,121.22 344,703,439.41 293,149,441.49 310,738,407.98 323,167,944.30 336,094,662.07
NCA – PP&E 15,495,000.00 4,652,358.00 5,489,782.44 6,313,249.81 6,881,442.29 7,294,328.83 7,586,101.98 7,889,546.06
NCA – Intangibles(ExGW) 49,178,000.00 14,887,545.60 17,567,303.81 20,202,399.38 22,020,615.32 23,341,852.24 24,275,526.33 25,246,547.39
NCA – Goodwill 45,920,000.00 45,920,000.00 45,920,000.00 45,920,000.00 45,920,000.00 45,920,000.00 45,920,000.00 45,920,000.00
NCA – Future Tax Benefit 0.00 – 0 – 0 – 0 – 0 – 0 – 0
NCA – Other 0.00 – 0 – 0 – 0 – 0 – 0 – 0
Total NCA 110,593,000.00 65,459,903.60 68,977,086.25 72,435,649.19 74,822,057.61 76,556,181.07 77,781,628.31 79,056,093.44
Total Assets 439,842,000.00 403,221,094.40 368,719,207.47 417,139,088.59 367,971,499.10 387,294,589.05 400,949,572.61 415,150,755.52
CL – Account Payable 140,607,000.00 9,304,716.00 10,979,564.88 12,626,499.61 13,762,884.58 14,588,657.65 15,172,203.96 15,779,092.12
CL – Short-Term Debt 4,237,000.00 4,652,358.00 5,489,782.44 6,313,249.81 6,881,442.29 7,294,328.83 7,586,101.98 7,889,546.06
CL – Provisions 5,118,000.00 9,304,716.00 10,979,564.88 12,626,499.61 13,762,884.58 14,588,657.65 15,172,203.96 15,779,092.12
CL – NCL Held Sale 0.00 – 0 – 0 – 0 – 0 – 0 – 0
CL – Other 11,777,000.00 1,860,943.20 2,195,912.98 2,525,299.92 2,752,576.92 2,917,731.53 3,034,440.79 3,155,818.42
Total Curr. Liabilities 161,739,000.00 25,122,733.20 29,644,825.18 34,091,548.95 37,159,788.36 39,389,375.66 40,964,950.69 42,603,548.71
NCL – Account Payable 5,247,000.00 5,247,000.00 5,247,000.00 5,247,000.00 5,247,000.00 5,247,000.00 5,247,000.00 5,247,000.00
NCL – Long-Term Debt 88,122,000.00 88,122,000.00 88,122,000.00 88,122,000.00 88,122,000.00 88,122,000.00 88,122,000.00 88,122,000.00
NCL – Provisions 3,919,000.00 3,919,000.00 3,919,000.00 3,919,000.00 3,919,000.00 3,919,000.00 3,919,000.00 3,919,000.00
NCL – Other 86,000.00 0 0 0 0 0 0
Total NCL 97,374,000.00 122,410,733.20 126,932,825.18 131,379,548.95 134,447,788.36 136,677,375.66 138,252,950.69 139,891,548.71
Total Liabilities 259,113,000.00 124,271,676.40 129,128,738.15 133,904,848.87 137,200,365.27 139,595,107.19 141,287,391.48 143,047,367.14
Share Capital 299,186,000.00 334,777,714.00 239,590,469.32 245,354,740.88 189,482,480.10 203,933,508.90 214,145,569.26 224,766,112.03
Reserves -116,168,000.00 (83,742,444.00) (32,938,694.64) – 0 – 0 – 0 – 0 – 0
Retained Earnings -2,289,000.00 27,914,148.00 32,938,694.64 37,879,498.84 41,288,653.73 43,765,972.96 45,516,611.87 47,337,276.35
Total Equity 180,729,000.00 278,949,418.00 239,590,469.32 283,234,239.72 230,771,133.83 247,699,481.86 259,662,181.13 272,103,388.38
Free cash flow of firm 1 2 3 4 5 6 7
N 6/30/2022 6/30/2023 6/30/2024 6/30/2025 6/30/2026 6/30/2027 6/30/2028
EBIT(1-t) 62,607,848.63 96,052,347.63 118,563,749.51 128,793,486.96 136,227,096.18 141,480,180.03 146,943,387.23
-CAPEX (10,842,642.00) 837,424.44 823,467.37 568,192.48 412,886.54 291,773.15 121,113.38
-∆WC 312,638,457.60 270,097,296.05 310,611,890.46 255,989,653.13 271,349,032.32 282,202,993.61 293,491,113.36
+depreciation 9,304,716.00 10,979,564.88 12,626,499.61 13,762,884.58 14,588,657.65 15,172,203.96 15,779,092.12
+Amoritization 9,304,716.00 10,979,564.88 12,626,499.61 13,762,884.58 14,588,657.65 15,172,203.96 15,779,092.12
Free cash flow of firm (229,883,250.97) (163,902,807.97) (180,245,108.70) (114,001,474.07) (120,946,165.02) (125,842,382.78) (130,889,747.39)
WACC 10.53% 10.53% 10.53% 10.53% 10.53% 10.53% 10.53%
PV of FCF -207982675 -134160928 -133482084 -76381782 -73314732 -69015385 -64944808
PV of FCF 2022-2028 -759282394
Horizontal value of firm In year 2028 2250281581
PV of Horizontal value 1116543571
PV of company 357,261,176.52
Cash flow
ASX Code Company Name Item 12/15 06/17 06/18 06/19 06/20 06/21
KGN Kogan.com Ltd Receipts from Customers — 291,236,987.00 448,098,179.00 497,943,349.00 578,954,000.00 885,495,000.00
KGN Kogan.com Ltd Payments to Suppliers and Employees — -280,322,571.00 -416,051,385.00 -489,176,203.00 -523,813,000.00 -926,357,000.00
KGN Kogan.com Ltd Dividends Received — 0.00 0.00 0.00 0.00 0.00
KGN Kogan.com Ltd Interest Received — 469,845.00 309,384.00 195,119.00 52,000.00 25,000.00
KGN Kogan.com Ltd Interest Paid — -159,806.00 -114,070.00 -465,554.00 -589,000.00 -596,000.00
KGN Kogan.com Ltd Tax Paid — -287,785.00 -4,413,508.00 -6,425,103.00 -8,971,000.00 -21,671,000.00
KGN Kogan.com Ltd Other Operating Cashflows — 0.00 0.00 0.00 0.00 0.00
KGN Kogan.com Ltd Net Operating Cashflows — 10,936,670.00 27,828,600.00 2,071,608.00 45,633,000.00 -63,104,000.00
KGN Kogan.com Ltd Payment for Purchase of PPE — -3,552,817.00 -7,237,590.00 -5,467,987.00 -8,154,000.00 -55,689,000.00
KGN Kogan.com Ltd Proceeds From Sale of PPE — 0.00 0.00 250,000.00 0.00 0.00
KGN Kogan.com Ltd Investments Purchased — 0.00 0.00 0.00 0.00 0.00
KGN Kogan.com Ltd Proceeds From Sale of Investments — 0.00 0.00 0.00 0.00 0.00
KGN Kogan.com Ltd Payments for Purchase of Subsidiaries — 0.00 0.00 0.00 0.00 0.00
KGN Kogan.com Ltd Proceeds from Sale of Subsidiaries — 0.00 0.00 0.00 0.00 0.00
KGN Kogan.com Ltd Loans Granted — 0.00 0.00 0.00 0.00 0.00
KGN Kogan.com Ltd Loans Repaid — 0.00 0.00 0.00 0.00 0.00
KGN Kogan.com Ltd Other Investing Cashflows — 0.00 0.00 0.00 0.00 0.00
KGN Kogan.com Ltd Net Investing Cashflows — -3,552,817.00 -7,237,590.00 -5,217,987.00 -8,154,000.00 -55,689,000.00
KGN Kogan.com Ltd Proceeds from Issues 0.00 34,999,999.00 0.00 0.00 100,000,000.00 20,001,000.00
KGN Kogan.com Ltd Proceeds from Borrowings 0.00 0.00 0.00 0.00 0.00 94,749,000.00
KGN Kogan.com Ltd Repayment of Borrowings 0.00 -4,900,000.00 0.00 0.00 0.00 -20,003,000.00
KGN Kogan.com Ltd Dividends Paid 0.00 -3,640,127.00 -10,000,750.00 -11,433,723.00 -13,996,000.00 -27,229,000.00
KGN Kogan.com Ltd Other Financing Cashflows 0.00 -3,624,346.00 0.00 -575,968.00 -4,219,000.00 -3,760,000.00
KGN Kogan.com Ltd Net Financing Cashflows 0.00 22,835,526.00 -10,000,750.00 -12,009,691.00 81,785,000.00 63,758,000.00
KGN Kogan.com Ltd Net Increase in Cash — 30,219,379.00 10,590,260.00 -15,156,070.00 119,264,000.00 -55,035,000.00
KGN Kogan.com Ltd Cash at Beginning of Period — 1,808,301.00 32,027,680.00 42,617,940.00 27,462,000.00 146,726,000.00
KGN Kogan.com Ltd Exchange Rate Adj — 0.00 0.00 0.00 0.00 0.00
KGN Kogan.com Ltd Other Cash Adjustments — 0.00 0.00 0.00 0.00 0.00
KGN Kogan.com Ltd Cash at End of Period — 32,027,680.00 42,617,940.00 27,461,870.00 146,726,000.00 91,691,000.00
dividend pay out ratio -1.27% -2.45% -2.64% -2.84% -3.51%
capital strcture
Total Assets ($M) 439.8 280 118.4
Total Liabilities ($M) 259.1 116 67.4
0.5891314234 0.4142857143 0.5692567568
Synergy
Synergy valuation
Assumption Description Value(High) Value(Low)
Revenue Enhancement Net work effect Number of passnger increase 1.6% number of passnger 1.5%
Economic scope (Price of tickets increase) 1.5% price increase 1.2% price increase
Cost Reduction Economic of scale fleet planning, purcahsing and MRO 3% expense 2.3% expense
Intergration of all central function 2.6% Employee cost 0.6% employee cost
Tax Reduction(D&A)
Tax Reduction(Tax expense)
Asset Reduction ‹‹‹
Compare group
Similar company KML Lufa average
Revenue Enhancement Net work effect 1.50% 1.60% 1.55% (sales revenue)
Economic scope (Price of tickets increase) 1.20% 1.50% 1.35%
Cost Reduction Economic of scale fleet planning, purcahsing and MRO 3.00% 2.30% 2.65% operating expense
Intergration of all central function (emplyee cost and agency fee) 0.60% 2.60% 1.60% 5
Tax Reduction(D&A) without tax Reduction 24,123
Tax Reduction(Tax expense) without tax expense
Asset Reduction Without asset reduction
Synergy value Value(max) value(min)
Synergy After tax adjustment of free cash flow RADR Value (MAX) Value (min) 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026
Revenue Enhancement Net work effect cost of equity 1.60% 1.50% 1.6% 1.6% 1.6% 1.6% 1.6% 1.6% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
Economic scope (Price of tickets increase) cost of equity 1.50% 1.20% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.20% 1.20% 1.20% 1.20% 1.20% 1.20%
Cost Reduction Economic of scale fleet planning, purcahsing and MRO WACC 3% 2.30% 3% 3% 3% 3% 3% 3% 2.30% 2.30% 2.30% 2.30% 2.30% 2.30%
Intergration of all central function (emplyee cost and agency fee) cost of debt 2.60% 0.60% 2.60% 2.60% 2.60% 2.60% 2.60% 2.60% 0.60% 0.60% 0.60% 0.60% 0.60% 0.60%
1 2 3 4 5 1 2 3 4 5
year 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 RADR 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 RADR
PV Net work effect 13334461 14093208 14516438 14172254 13455417 13993634 11.65% 12501057.4340941 13212382.1672947 18939749.418 13286488.1385707 14222439.7377067 14791337.327215 11.65%
PV of Economic scope (Price of tickets increase) 12501057 13212382 13609161 13286488 12614453 13119032 11.65% 10000845.9472753 10569905.7338358 10887328.4220882 16515461.492496 10091562.7671956 10495225.2778834 11.65%
PV of Economic of scale fleet planning, purcahsing and MRO 22477041 23187522 23845005 23515200 22551700 23453768 10.53% 17232398 17777100 18281170 26906439 17289637 17981222 10.53%
PV of Intergration of all central function (emplyee cost and agency fee) 20643445 22567753 24593612 25701857 26120775 6268986 4.30% 4763872 5207943 5675449 5931198 6027871 6268986 4.30%
PV of synergy cash flow from 2021 to 2025 68956004 73060865 76564215 76675799 74742346 56835420 0 44498173 46767331 53783697 62639587 47631511 49536771
Horizontal synergy value 2841770981 2476838549.93656
total 5 years synegy 369999230 255320299
Total synergy value 3211770210 2732158849
Synergy value (MAX)
year 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026
PV Net work effect 15839 18890 19929 19928 19379 20638
PV of Economic scope (Price of tickets increase) 14849 17709 18683 18682 18168 19348
PV of Economic of scale fleet planning, purcahsing and MRO 6585 7915 8416 8481 8312 8853
PV of Intergration of all central function (emplyee cost and agency fee) 5923 7390 8156 8532 8679 2133
PV of synergy cash flow from 2021 to 2025 43196 51903 55183 55623 54538 50973
Horizontal synergy value 2548627
total 5 years synegy 260444
Total synergy value 2809071
Synergy value (MIN)
year 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026
PV Net work effect 14849 17709 24198 18682 18171 19352
PV of Economic scope (Price of tickets increase) 11879 14167 14946 21100 14534 15479
PV of Economic of scale fleet planning, purcahsing and MRO 5048 6068 6452 8897 6373 6787
PV of Intergration of all central function (emplyee cost and agency fee) 1367 1705 1882 1969 2003 2133
PV of synergy cash flow from 2021 to 2025 33143 39650 47478 50649 41081 43751
Horizontal synergy value 2187544
total 5 years synegy 212001
Total synergy value 2399545
#
Sensitive analysis
Terminal value growth rate(terminal value)
21401807 -0.50% -0.25% 0.00% 0.25% 0.50%
5.0% 17969314 19351569 20964200 22870036 25157040
5.5% 20964200 22870036 25157040 27952266.6666667 31446300
6.0% 24975851 27851595 31446300 35938629 42230315
6.5% 31446300 35938629 41928400 50314080 62892600
7.0% 42532267 51038720 63798400 85064533.3333334 127596800
Terminal value growth rate(PV of firm)
21401807 -0.50% -0.25% 0.00% 0.25% 0.50%
5.0% 12229613 13170353 14267882.259255 15564962.4646418 17121459
5.5% 14267882 15564962.4646418 17121459 19023843.01234 21401823 ‹
6.0% 16998145 18955327.8298228 21401807 24459226.7301514 28741243
6.5% 21401823 24459226.7301514 28535765 34242917 42803647
7.0% 28946746 34736095.2301106 43420119.0376382 57893492.0501843 86840238
Discount rate (terminal value)
21401823 -0.50% -0.25% 0.00% 0.25% 0.50%
7.0% 125792400 83861600 62896200 50316960 41930800
7.5% 62896200 50316960 41930800 35940686 31448100
8.0% 41930800 35940686 31448100 27953867 25158480
8.5% 31448100 27953867 25158480 22871345 20965400
9.0% 25158480 22871345 20965400 19352677 17970343
Discount rate (PV of firm)
21401807 -0.50% -0.25% 0.00% 0.25% 0.50%
7.0% 85612194 57074796 42806097 34244878 28537398
7.5% 42806097 34244878 28537398 24460627 21403048
8.0% 28537398 24460627 21401807 19024932 17122439
8.5% 21403048 19024932 17122439 15565853 14268699
9.0% 17122439 15565853 14268699 13171107 12230313
Sensitive analysis (FCFF value)
FCFF(value) -0.50% -0.25% 0.00% 0.25% 0.50%
Working capital 21470113 21435960 21401807 21367653 21333500
depreciation 21339089 21370448 21401807 21433166 21464525
Growth rate 16998145 18955328 21401807 24459227 28741243
Discount rate 28537398 24460627 21401807 19024932 17122438.7509097
Sensitive analysis (FCFF percentage change)
FCFF( percentage change) -0.50% -0.25% 0.00% 0.25% 0.50%
Working capital 0.32% 0.16% 0.00% -0.16% -0.32%
depreciation -0.29% -0.15% 0.00% 0.15% 0.29%
Growth rate -20.58% -11.43% 0.00% 14.29% 34.29%
Discount rate 33.34% 14.29% 0.00% -11.11% -20.00%

Balance sheet
Balance sheet of Sydney Airport from 2016 to 2020
Item 06/17 06/18 06/19 06/20 06/21 Jun-22 Jun-23 Jun-24 Jun-25 Jun-26 Jun-27 Jun-28
CA – Cash 32,027,680.00 42,617,940.00 27,461,870.00 146,726,000.00 91,691,000.00
CA – Receivables 2,045,324.00 4,999,536.00 5,365,362.00 5,760,000.00 5,810,000.00
CA – Prepaid Expenses 445,287.00 546,732.00 452,361.00 1,373,000.00 1,981,000.00
CA – Inventories 39,741,987.00 50,200,175.00 75,850,076.00 112,882,000.00 227,873,000.00
CA – Investments 0.00 572,708.00 382,691.00 0.00 205,000.00
CA – NCA Held Sale 0.00 0.00 0.00 0.00 0.00
CA – Other 180,230.00 105,746.00 29,850.00 30,000.00 1,689,000.00
Total Current Assets 74,440,508.00 99,042,837.00 109,542,210.00 266,771,000.00 329,249,000.00
NCA – Receivables 0.00 0.00 0.00 0.00 0.00
NCA – Inventories 0.00 0.00 0.00 0.00 0.00
NCA – Investments 0.00 0.00 0.00 0.00 0.00
NCA – PP&E 489,372.00 449,088.00 1,566,189.00 2,603,000.00 15,495,000.00
NCA – Intangibles(ExGW) 4,480,040.00 6,492,748.00 5,815,193.00 8,279,000.00 49,178,000.00
NCA – Goodwill 0.00 0.00 0.00 0.00 45,920,000.00
NCA – Future Tax Benefit 913,936.00 0.00 1,473,779.00 2,387,000.00 0.00
NCA – Other 0.00 0.00 0.00 0.00 0.00
Total NCA 5,883,348.00 6,941,836.00 8,855,161.00 13,269,000.00 110,593,000.00
Total Assets 80,323,856.00 105,984,673.00 118,397,371.00 280,040,000.00 439,842,000.00
CL – Account Payable 28,504,597.00 45,355,366.00 51,725,667.00 82,868,000.00 140,607,000.00
CL – Short-Term Debt 727,265.00 0.00 556,702.00 1,987,000.00 4,237,000.00
CL – Provisions 3,159,722.00 4,710,817.00 5,362,283.00 9,744,000.00 5,118,000.00
CL – NCL Held Sale 0.00 0.00 0.00 0.00 0.00
CL – Other 5,165,416.00 7,319,876.00 7,733,283.00 20,394,000.00 11,777,000.00
Total Curr. Liabilities 37,557,000.00 57,386,059.00 65,377,935.00 114,993,000.00 161,739,000.00
NCL – Account Payable 0.00 0.00 0.00 0.00 5,247,000.00
NCL – Long-Term Debt 0.00 0.00 692,293.00 453,000.00 88,122,000.00
NCL – Provisions 95,171.00 717,356.00 136,241.00 197,000.00 3,919,000.00
NCL – Other 0.00 0.00 1,210,947.00 372,000.00 86,000.00
Total NCL 95,171.00 717,356.00 2,039,481.00 1,022,000.00 97,374,000.00
Total Liabilities 37,652,171.00 58,103,415.00 67,417,416.00 116,015,000.00 259,113,000.00
Share Capital 167,100,702.00 167,293,634.00 167,822,590.00 269,033,000.00 299,186,000.00
Reserves -131,889,797.00 -130,983,399.00 -130,279,072.00 -130,464,000.00 -116,168,000.00
Retained Earnings 7,460,780.00 11,571,023.00 13,436,437.00 25,456,000.00 -2,289,000.00
Other Equity 0.00 0.00 0.00 0.00 0.00
Convertible Equity 0.00 0.00 0.00 0.00 0.00
SE Held Sale 0.00 0.00 0.00 0.00 0.00
Outside Equity — — — — —
Total Equity 42,671,685.00 47,881,258.00 50,979,955.00 164,025,000.00 180,729,000.00
Percentage of sales
Cash/Sales 11% 10% 6% 30% 12% 10% 10% 10% 10% 10% 10% 10%
inventories/Sales 14% 12% 18% 23% 29% 25% 16% 16% 10% 10% 10% 10%
Receivables/sales 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%
Investments/sales 0.0% 0.1% 0.1% 0.0% 0.0% 0% 0% 0% 0% 0% 0% 0%
Prepaid Expenses/sales 0.2% 0.1% 0.1% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3%
Other Current Assets/sales 0.1% 0.0% 0.0% 0.0% 0.2% 0% 0% 0% 0% 0% 0% 0%
Total Current Assets/sales 26% 24% 25% 54% 42%
Property & Plant Equipment/sales 0.2% 0.1% 0.4% 0.5% 2.0% 1% 1% 1% 1% 1% 1% 1%
Intangible Assets/sales 1.6% 1.6% 1.3% 1.7% 6.3% 2% 2% 2% 2% 2% 2% 2%
Future tax benefit/sales 0.3% 0.0% 0.3% 0.5% 0.0% 0% 0% 0% 0% 0% 0% 0%
Total Non – Curent Assets/sales 2% 2% 2% 3% 14%
Total Assets/sales 28% 26% 27% 57% 57%
Account Payable/sales 0.00% 0.00% 0.00% 0.00% 0.68% 1% 1% 1% 1% 1% 1% 1%
Short-Term Debt/sales 0.3% 0.0% 0.1% 0.4% 0.5% 1% 1% 1% 1% 1% 1% 1%
Provisions(Current Liabilities)/sales 1% 1% 1% 2% 1% 1% 1% 1% 1% 1% 1% 1%
Other Current Liabilities/sales 2% 2% 2% 4% 2% 2% 2% 2% 2% 2% 2% 2%
Total Current Liabilities 13% 14% 15% 23% 21%
long-term debt (Non – Current Liabilities) 0.00% 0.00% 0.16% 0.09% 11.36% 10% 10% 10% 10% 10% 10% 10%
long-term debt (Non – Current Liabilities) 0.0% 0.0% 0.2% 0.1% 11.4%
Provisions(Non – Current Liabilities)/sales 0.03% 0.18% 0.03% 0.04% 0.51% 0% 0% 0% 0% 0% 0% 0%
Other Non-Current Liabilities 0.00% 0.00% 0.28% 0.08% 0.01% 0% 0% 0% 0% 0% 0% 0%
Total Non – Current Liabilities/sales 0.0% 0.2% 0.5% 0.2% 12.6%
Total Liabilities 13% 14% 16% 24% 33%
Share Capital 58% 41% 39% 55% 39% 40% 40% 40% 40% 40% 40% 40%
Reserves -46% -32% -30% -27% -15% -9% -3% 0% 0% 0% 0% 0%
Retained Earnings 3% 3% 3% 5% -0% 3% 3% 3% 3% 3% 3% 3%
Other 0.00 0.00 0.00 0.00 0.00 0% 0% 0% 0% 0% 0% 0%
Total Equity 0.15 0.12 0.12 0.33 0.23

total non-current liability
3159722 4710817 5362283 9744000

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