Deluxe Corp Case Study Model

Exhibit TN1 DELUXE CORPORATION Analysis of Flexibility by Rating Category AAA AA A BBB 1 Pretax cost of debt (case Exhibit 9) 5.51% 5.52% 5.70% 6.33% 2 23.4 13.3 6.3 3.9 (case Exhibit 6) Estimate of Maximum Debt Capacity 3 $359 $359 $359 $359 4 Maximum interest implied by rating $15 $27 $57 $92 5 Maximum total debt implied by rating $279 $490 $1,002 $1,456 6 $200 $200 $200 $200 7 Maximum interest implied by rating $9 $15 $32 $51 8 Maximum total debt implied by rating $155 $272 $557 $810 Estimate of Unused Debt Capacity 9 $161 $161 $161 $161 10 Maximum debt implied by rating $279 $490 $1,002 $1,456 11 Unused debt capacity at current rating $117 $328 $840 $1,294 12 Unused debt capacity until investment-$1,535 $1,325 $813 $358 Estimate of Capital Structure 13 $2,665 $2,665 $2,665 $2,665 14 Maximum debt implied by rating $279 $490 $1,002 $1,456 15 Total debt/capital implied by rating 9.5% 15.5% 27.3% 35.3% Notes: (1) Normalized five-year EBIT is the average of EBIT forecasted over 2002 - 2006 in (2) Downside is EBIT is estimated by Rajat Singh in the case text. Required EBIT interest coverage ( x ) Normalized 5-year EBIT 1 (case Exhibit 4) Downside EBIT 2 Book value of Deluxe's existing debt 3 grade rating is lost (at BB) Deluxe Corp. market value of equity 4 (3) Book value of debt in 2001 is listed in case Exhibit 3, and is comprised of long-ter million), short-term debt ($150.0 million) and current maturities of long-term debt ($1 (4) Market value of equity in 2001 is estimated as the year-end share price, $41.58 tim shares outstanding, 64,102,000 (see case Exhibit 1).

Разумеется, на ее экране замигал значок, извещающий о возвращении Следопыта. Сьюзан положила руку на мышку и открыла сообщение, Это решит судьбу Хейла, - подумала.  - Хейл - это Северная Дакота.  - На экране появилось новое окошко.

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