Financial Decision Making Exercises

Due: 25 April 2016

Assignment No. 2 (Group Assignment)

1.

Basic InformationFixed asset investment $48,900Operating Cash Flow (OCF) $14,600The project's life (Y) 8 After Tax Salvage $11,000Required rate of return 12%

TOTAL Projected Cash FlowYear 0 1 2Operating Cash Flow (OCF) 14,600.00 14,600.00 Salvage valueNet capital spending (NCS) -48,900

CFFA -48,900 14,600 14,600

NPV 28,070 IRR 26%

A project will produce an operating cash flow of $14,600 a year for 8 years. The initial fixed asset investment in the project will be $48,900. The net aftertax salvage value is estimated at $11,000 and will be received during the last year of the project's life. What is the net present value of the project if the required rate of return is 12 percent? 

3 4 5 6 7 8 14,600.00 14,600.00 14,600.00 14,600.00 14,600.00 14,600.00

11,000.00

14,600 14,600 14,600 14,600 14,600 25,600

A project will produce an operating cash flow of $14,600 a year for 8 years. The initial fixed asset investment in the project will be $48,900. The net aftertax salvage value is estimated at $11,000 and will be received during the last year of the project's life. What is the net present value of the project if the required rate of return is 12 percent? 

Due: 25 April 2016

Assignment No. 2 (Group Assignment)

2.

Basic InformationAF (equipment) $180,000Salvage value $34,000NWC $20,000The fixed costs FC $16,000Variable costs VC $168,000Rate of Return 15%Tax Rate 34%

Market value $34,000Book Value - Dif $34,000TAX $11,560After Tax Salvage $22,440

Año Depreciation1 60,000 2 60,000 3 60,000

TOTAL Projected Cash FlowYear 0Operating Cash Flow (OCF) Changes in NWC -20,000 Capital Spending -180,000

CFFA Cash Flow from Assets -200,000

27,905 OCF -172,095

Annuity

OCF = NI + Dep 75,374

NI= 15,374 (=) NI + 60.000

You are working on a bid to build two city parks a year for the next three years. This project requires the purchase of $180,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the 3-year project life. The equipment can be sold at the end of the project for $34,000. You will also need $20,000 in net working capital for the duration of the project. The fixed costs will be $16,000 a year and the variable costs will be $168,000 per park. Your required rate of return is 15 percent and your tax rate is 34 percent. What is the minimal amount you should bid per park? (Round your answer to the nearest $100) 

A. $72,500B. $128,600C. $154,300D. $189,100E. $217,600Please show the entire calculations too!

Sales ? TOTAL Annual Costs FC + VC 352,000 Depreciación 60,000 Tax Rate (34%) ? Net Income 15,374

NI = (Sales – costs – depreciation)(1 – T)Sales = 435,293.41

Price per Park 217,600

Assignment No. 2 (Group Assignment)

Accumulated Book Value 60,000 120,000 120,000 60,000 180,000 -

1 2 3 OCF OCF OCF

20,000 22,440

OCF OCF "OCF"+ 42.440

OCF OCF OCF-75,374 -75,374 -75,374

Book value = initial cost – accumulated depreciationAfter-tax salvage = salvage – T(salvage – book value)

You are working on a bid to build two city parks a year for the next three years. This project requires the purchase of $180,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the 3-year project life. The equipment can be sold at the end of the project for $34,000. You will also need $20,000 in net working capital for the duration of the project. The fixed costs will be $16,000 a year and the variable costs will be $168,000 per park. Your required rate of return is 15 percent and your tax rate is 34 percent. What is the minimal amount you should bid per park? (Round your answer to the nearest $100) 

A. $72,500B. $128,600C. $154,300D. $189,100E. $217,600Please show the entire calculations too!

NI = (Sales – costs – depreciation)(1 – T)15,374 = (Sales – 352,000 – 60,000)(1 - .34)15,374 = Sales(.66) – (412,000)(.66)15,374 = Sales(.66) - 271,920

Sales =287,294 / .66 = 435,293

NI = (Sales – costs – depreciation)(1 – T)

NI = (Sales – costs – depreciation)(1 – T)15,374 = (Sales – 352,000 – 60,000)(1 - .34)15,374 = Sales(.66) – (412,000)(.66)15,374 = Sales(.66) - 271,920

Sales =287,294 / .66 = 435,293

DETERMINACIÓN DE PRECIO DE LICITACIÓN

= initial cost – accumulated depreciation = salvage – T(salvage – book value)

You are working on a bid to build two city parks a year for the next three years. This project requires the purchase of $180,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the 3-year project life. The equipment can be sold at the end of the project for $34,000. You will also need $20,000 in net working capital for the duration of the project. The fixed costs will be $16,000 a year and the variable costs will be $168,000 per park. Your required rate of return is 15 percent and your tax rate is 34 percent. What is the minimal amount you should bid per park? (Round your answer to the nearest $100) 

A. $72,500B. $128,600C. $154,300D. $189,100E. $217,600Please show the entire calculations too!

NI = (Sales – costs – depreciation)(1 – T)15,374 = (Sales – 352,000 – 60,000)(1 - .34)15,374 = Sales(.66) – (412,000)(.66)15,374 = Sales(.66) - 271,920

Sales =287,294 / .66 = 435,293

NI = (Sales – costs – depreciation)(1 – T)15,374 = (Sales – 352,000 – 60,000)(1 - .34)15,374 = Sales(.66) – (412,000)(.66)15,374 = Sales(.66) - 271,920

Sales =287,294 / .66 = 435,293

DETERMINACIÓN DE PRECIO DE LICITACIÓN

You are working on a bid to build two city parks a year for the next three years. This project requires the purchase of $180,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the 3-year project life. The equipment can be sold at the end of the project for $34,000. You will also need $20,000 in net working capital for the duration of the project. The fixed costs will be $16,000 a year and the variable costs will be $168,000 per park. Your required rate of return is 15 percent and your tax rate is 34 percent. What is the minimal amount you should bid per park? (Round your answer to the nearest $100) 

A. $72,500B. $128,600C. $154,300D. $189,100E. $217,600Please show the entire calculations too!

Due: 25 April 2016

Assignment No. 2 (Group Assignment)

3.

Precision Tool Rate of Return 15%

Basic Information MACHINE ACOST $892,000Annual operating costs -$26,300Year life (Y) 4 Depreciation $223,000

TOTAL Projected Cash FlowYear 0 1Operating Cash Flow (OCF) -26,300 Net capital spending (NCS) -892,000

CFFA -892,000 -26,300

-22,870 PV OCF -967,086 EAC -338,737

Reduced Costs 16,965

Precision Tool is analyzing two machines to determine which one it should purchase. The company requires a 15 percent rate of return and uses straight-line depreciation to a zero book value over the life of its equipment. Machine A has a cost of $892,000, annual operating costs of $26,300, and a 4-year life. Machine B costs $1,127,000, has annual operating costs of $19,500, and has a 5-year life. Whichever machine is purchased will be replaced at the end of its useful life. Precision Tool should purchase Machine _____ because it lowers the firm's annual cost by approximately _______ as compared to the other machine. A. A; $16,965.B. A; $17,404C. B; $16,965D. B; $17,404E. B; $17,521Please show your calculations.

Assignment No. 2 (Group Assignment) REPLACEMENT PROBLEM / Equivalent Annual Costs

Basic Information MACHINE BCOSTAnnual operating costsYear life (Y)Depreciation

TOTAL Projected Cash Flow2 3 4 Year

-26,300 -26,300 -26,300 Operating Cash Flow (OCF) Net capital spending (NCS)

-26,300 -26,300 -26,300 CFFA

-19,887 -17,293 -15,037 PV OCFEAC

Precision Tool is analyzing two machines to determine which one it should purchase. The company requires a 15 percent rate of return and uses straight-line depreciation to a zero book value over the life of its equipment. Machine A has a cost of $892,000, annual operating costs of $26,300, and a 4-year life. Machine B costs $1,127,000, has annual operating costs of $19,500, and has a 5-year life. Whichever machine is purchased will be replaced at the end of its useful life. Precision Tool should purchase Machine _____ because it lowers the firm's annual cost by approximately _______ as compared to the other machine. A. A; $16,965.B. A; $17,404C. B; $16,965D. B; $17,404E. B; $17,521Please show your calculations.

REPLACEMENT PROBLEM / Equivalent Annual Costs

$1,127,000-$19,500

5 $225,400

0 1 2 3 4(19,500) (19,500) (19,500) (19,500)

(1,127,000)

(1,127,000) (19,500) (19,500) (19,500) (19,500)

(16,957) (14,745) (12,822) (11,149)(1,192,367)

(355,702)

Precision Tool is analyzing two machines to determine which one it should purchase. The company requires a 15 percent rate of return and uses straight-line depreciation to a zero book value over the life of its equipment. Machine A has a cost of $892,000, annual operating costs of $26,300, and a 4-year life. Machine B costs $1,127,000, has annual operating costs of $19,500, and has a 5-year life. Whichever machine is purchased will be replaced at the end of its useful life. Precision Tool should purchase Machine _____ because it lowers the firm's annual cost by approximately _______ as compared to the other machine. A. A; $16,965.B. A; $17,404C. B; $16,965D. B; $17,404E. B; $17,521Please show your calculations.

5(19,500)

(19,500)

(9,695)

Due: 25 April 2016

Assignment No. 2 (Group Assignment)

4.

Investment 12,680,000,000,000 Capacity 800Price 275,000,000 OCF Break-even () 246Sales 67,650,000,000 Sales (Years) 9

ROI 19%

Cash Break-Even OCF = 0Financiero Break-Even NPV = 0

TOTAL Projected Cash FlowYear 0Operating Cash Flow (OCF) Net capital spending (NCS) (12,680,000,000,000)

CFFA (12,680,000,000,000)Annuity

Cash Flow per UNIT 51,544,715,447

Financial Break - Even 59.09

In an effort to capture the large jet market, Hiro Airplanes invested $12.68 billion developing its B490, which is capable of carrying 800 passengers. The plane has a list price of $275 million. In discussing the plane, Hiro Airplanes stated that the company would break-even when 246 B490s were sold. Assume the break-even sales figure given is the cash flow break-even. Suppose the sales of the B490 last for only 9 years. How many airplanes must Hiro Airplanes sell per year to provide its shareholders a 19 percent rate of return on this investment? A. 47.17B. 52.48C. 59.09D. 63.10E. 68.40Please show your calculations…

Assignment No. 2 (Group Assignment)

Qc 246Qf ?

1 2 3OCF OCF OCF

OCF OCF OCF(3,045,637,124,907) (3,045,637,124,907) (3,045,637,124,907)

In an effort to capture the large jet market, Hiro Airplanes invested $12.68 billion developing its B490, which is capable of carrying 800 passengers. The plane has a list price of $275 million. In discussing the plane, Hiro Airplanes stated that the company would break-even when 246 B490s were sold. Assume the break-even sales figure given is the cash flow break-even. Suppose the sales of the B490 last for only 9 years. How many airplanes must Hiro Airplanes sell per year to provide its shareholders a 19 percent rate of return on this investment? A. 47.17B. 52.48C. 59.09D. 63.10E. 68.40Please show your calculations…

4 5 6OCF OCF OCF

OCF OCF OCF(3,045,637,124,907) (3,045,637,124,907) (3,045,637,124,907)

In an effort to capture the large jet market, Hiro Airplanes invested $12.68 billion developing its B490, which is capable of carrying 800 passengers. The plane has a list price of $275 million. In discussing the plane, Hiro Airplanes stated that the company would break-even when 246 B490s were sold. Assume the break-even sales figure given is the cash flow break-even. Suppose the sales of the B490 last for only 9 years. How many airplanes must Hiro Airplanes sell per year to provide its shareholders a 19 percent rate of return on this investment? A. 47.17B. 52.48C. 59.09D. 63.10E. 68.40Please show your calculations…

7 8 9OCF OCF OCF

OCF OCF OCF(3,045,637,124,907) (3,045,637,124,907) (3,045,637,124,907)

In an effort to capture the large jet market, Hiro Airplanes invested $12.68 billion developing its B490, which is capable of carrying 800 passengers. The plane has a list price of $275 million. In discussing the plane, Hiro Airplanes stated that the company would break-even when 246 B490s were sold. Assume the break-even sales figure given is the cash flow break-even. Suppose the sales of the B490 last for only 9 years. How many airplanes must Hiro Airplanes sell per year to provide its shareholders a 19 percent rate of return on this investment? A. 47.17B. 52.48C. 59.09D. 63.10E. 68.40Please show your calculations…

Due: 25 April 2016

Assignment No. 2 (Group Assignment)

5.

Basic InformationProject Cost $630,000Salvage value $0Depreciation $126,000(Q) Units (per year) 160 Year life (Y) 5

$24,000$12,000

$283,000Rate of Return 11%Tax Rate 34%

Income Statement Base CASE

Sales 3,840,000 Variable Costs 1,920,000Gross profit 1,920,000 Fixed costs 283,000Depreciation 126,000EBIT / UAII 1,511,000 Taxes (34%) 513,740

Net Income 997,260

TOTAL Cash Flow BASE CASEYear 0Operating Cash Flow (OCF) Net capital spending (NCS) (630,000)

CFFA (630,000)

3,521,453

TOTAL Cash Flow WORST CASEYear 0Operating Cash Flow (OCF) Net capital spending (NCS) (630,000)

Price per Unit PVariable Cost VCFixed Costs FC

NPV1

You are considering a new product launch. The project will cost $630,000, have a 5-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 160 units per year, price per unit will be $24,000, variable cost per unit will be $12,000, and fixed costs will be $283,000 per year. The required return is 11 percent and the relevant tax rate is 34 percent. Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within 9 percent. What is the worst case NPV? 

A. $3,417,907B. $2,654,241C. $888,618D. $3,102,134E. $3,458,020

CFFA (630,000)

2,654,241 NPV2

Assignment No. 2 (Group Assignment)

Projections$630,000

$0$126,000

145.6 (-) 5

$24,000$13,080 (+)

$308,470 (+)11%34%

Projections 9% 3,494,400

1,904,448 1,589,952

308,470126,000

1,155,482 392,864

762,618

1 2 3 4 51,123,260 1,123,260 1,123,260 1,123,260 1,123,260

1,123,260 1,123,260 1,123,260 1,123,260 1,123,260

1 2 3 4 5888,618 888,618 888,618 888,618 888,618

You are considering a new product launch. The project will cost $630,000, have a 5-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 160 units per year, price per unit will be $24,000, variable cost per unit will be $12,000, and fixed costs will be $283,000 per year. The required return is 11 percent and the relevant tax rate is 34 percent. Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within 9 percent. What is the worst case NPV? 

A. $3,417,907B. $2,654,241C. $888,618D. $3,102,134E. $3,458,020

888,618 888,618 888,618 888,618 888,618

You are considering a new product launch. The project will cost $630,000, have a 5-year life, and have no salvage value; depreciation is straight-line to zero. Sales are projected at 160 units per year, price per unit will be $24,000, variable cost per unit will be $12,000, and fixed costs will be $283,000 per year. The required return is 11 percent and the relevant tax rate is 34 percent. Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within 9 percent. What is the worst case NPV? 

A. $3,417,907B. $2,654,241C. $888,618D. $3,102,134E. $3,458,020

Due: 25 April 2016

Assignment No. 2 (Group Assignment)

6.

Interest = $2,310Dividends = $1,850TIE = 2.2Depreciation = $460

Cash Coverage Ratio 2.40La cuenta de intereses se cubrió 2,40 veces contando con la depreciación, se trata de una medida básica para generar efectivo

The Bike Shop paid $2,310 in interest and $1,850 in dividends last year. The times interest earned ratio is 2.2 and the depreciation expense is $460. What is the value of the cash coverage ratio? 

A. 1.67B. 1.80C. 2.21D. 2.40E. 2.52Please show your calculations.

Assignment No. 2 (Group Assignment)

TimesLa cuenta de intereses se cubrió 2,40 veces contando con la depreciación, se trata de una medida básica para generar efectivo

The Bike Shop paid $2,310 in interest and $1,850 in dividends last year. The times interest earned ratio is 2.2 and the depreciation expense is $460. What is the value of the cash coverage ratio? 

A. 1.67B. 1.80C. 2.21D. 2.40E. 2.52Please show your calculations.

The Bike Shop paid $2,310 in interest and $1,850 in dividends last year. The times interest earned ratio is 2.2 and the depreciation expense is $460. What is the value of the cash coverage ratio? 

A. 1.67B. 1.80C. 2.21D. 2.40E. 2.52Please show your calculations.

RATIONUMERIC RATIO´S CALCULATIONS

2015

Liquidity Ratios GOOGLE YAHOO

Current Ratio = CA / CL (times) 4.67 5.88

Cash Ratio = Cash / CL (times) 3.78 4.59

Long-term Solvency Ratios

Total Debt Ratio = (TA – TE) / TA (times) 0.18 0.36

Debt/Equity = TD / TE (times) 0.04 0.05

Equity Multiplier = TA / TE = 1 + D/E (times) 1.23 1.56Long-term debt ratio = LTD / (LTD + TE) (times) 0.02 0.04

Coverage Ratios

Times Interest Earned = EBIT / Interest 5.95 53.84

Receivables Ratios

Receivables Turnover = Sales / Accounts Receivable 2.66 2.39

Days’ Sales in Receivables = 365 / Receivables Turnover 137.08 152.64

Total Asset Turnover

Total Asset Turnover = Sales / Total Assets 3.82 -1.03

Profitability Measures

Profit Margin = Net Income / Sales 22% -88%

Return on Assets (ROA) = Net Income / Total Assets 0.83 0.90

Return on Equity (ROE) = Net Income / Total Equity 14% -15%

Google Finance Summary Information:

RTA: Si bien laz razones de liquidez, solvencia a largo plazo, cuentas por cobrar son equiparables o semejantes para las 2 compañias entre el año 2012 y 2015, se se denota una gran diferencia en las razones de utilidad en especial en el año 2015 Yahoo tiene 88 centavos de perdida por cada dolar en ventas, miestras que Google genera 22 centavos de utilidad por cada dolar en ventas. En general Yahoo viene con variaciones negativas en sus razones de ganancia desde el año 2013 siendo el año 2014 el de mayores variaciones negativas.

Company name Price Change

YHOO 37.48 -0.19

GOOGL 737.77 -42.23

Key stats and ratios 2015

Google Yahoo

Net profit margin 21.80% -95.30%

Operating margin 25.82% -95.58%

EBITD margin 32.57% 9.56%

Return on average assets 11.82% -8.86%

Return on average equity 14.12% -12.86%

Employees - -

CDP Score 99 A 98 B

NUMERIC RATIO´S CALCULATIONS ANUAL VARIATION2014 2013 2012 2015 2014

GOOGLE YAHOO GOOGLE YAHOO GOOGLE YAHOO GOOGLE YAHOO GOOGLE4.69 2.09 4.58 3.75 4.22 4.38 0.0% 3.8% 0.1%3.84 1.77 3.69 2.54 3.35 3.24 -0.1% 2.8% 0.1%

0.20 0.37 0.21 0.22 0.24 0.15 0.0% 0.0% 0.0%0.05 0.03 0.06 0.09 0.08 0.00 0.0% 0.0% 0.0%1.24 1.59 1.27 1.29 1.31 1.17 0.0% 0.0% 0.0%0.03 0.03 0.02 0.08 0.04 0.00 0.0% 0.0% 0.0%

4.74 2.60 5.80 4.13 4.96 2.69 1.2% 51.2% -1.1%

2.61 3.56 2.52 3.47 2.68 3.08 0.1% -1.2% 0.1%139.99 102.61 144.59 105.23 136.17 118.62 -2.9% 50.0% -4.6%

3.82 0.44 3.49 7.39 3.18 0.96 0.0% -1.5% 0.3%

21% 163% 23% 29% 23% 79% 0.0% -2.5% 0.0%0.82 0.72 0.80 2.16 0.74 0.76 0.0% 0.2% 0.0%14% 19% 15% 10% 15% 27% 0.0% -34.4% -1.0%

RTA: Si bien laz razones de liquidez, solvencia a largo plazo, cuentas por cobrar son equiparables o semejantes para las 2 compañias entre el año 2012 y 2015, se se denota una gran diferencia en las razones de utilidad en especial en el año 2015 Yahoo tiene 88 centavos de perdida por cada dolar en ventas, miestras que Google genera 22 centavos de utilidad por cada dolar en ventas. En general Yahoo viene con variaciones negativas en sus razones de ganancia desde el año 2013 siendo el año 2014 el de mayores variaciones

Chg % Mkt Cap

-0.50% 35.31B

-5.41% 474.12B

ANUAL VARIATION2014 2013

YAHOO GOOGLE YAHOO-1.7% 0.4% -0.6%-0.8% 0.3% -0.7%

0.2% 0.0% 0.1%-0.1% 0.0% 0.1%0.3% 0.0% 0.1%0.0% 0.0% 0.1%

-1.5% 0.8% 1.4%

0.1% -0.2% 0.4%-2.6% 8.4% -13.4%

-7.0% 0.3% 6.4%

1.3% 0.0% -0.5%-1.4% 0.1% 1.4%9.0% -0.4% -16.6%

RTA: Si bien laz razones de liquidez, solvencia a largo plazo, cuentas por cobrar son equiparables o semejantes para las 2 compañias entre el año 2012 y 2015, se se denota una gran diferencia en las razones de utilidad en especial en el año 2015 Yahoo tiene 88 centavos de perdida por cada dolar en ventas, miestras que Google genera 22 centavos de utilidad por cada dolar en ventas. En general Yahoo viene con variaciones negativas en sus razones de ganancia desde el año 2013 siendo el año 2014 el de mayores variaciones

BALANCE

Google

In Millions of USD (except for per share items) 2015GOOGLE

Cash & Equivalents 9,169.00 Short Term Investments 56,517.00Cash and Short Term Investments 73,066.00Accounts Receivable - Trade, Net 11,556.00Receivables - Other -Total Receivables, Net 13,909.00Total Inventory -Prepaid Expenses 2,511.00Other Current Assets, Total 628.00Total Current Assets 90,114 Property/Plant/Equipment, Total - Gross 40,146.00Accumulated Depreciation, Total -11,130.00Goodwill, Net 15,869.00Intangibles, Net 3,847.00Long Term Investments 5,183.00Other Long Term Assets, Total 3,432.00Total Assets 147,461.00Accounts Payable 1,931.00Accrued Expenses 8,293.00Notes Payable/Short Term Debt 2,000.00

Current Port. of LT Debt/Capital Leases 1,225.00Other Current liabilities, Total 5,861.00Total Current Liabilities 19,310 Long Term Debt 1,995.00Capital Lease Obligations 0.00Total Long Term Debt 1,995.00Total Debt 5,220.00Deferred Income Tax 189.00Minority Interest -Other Liabilities, Total 5,636.00Total Liabilities 27,130.00Redeemable Preferred Stock, Total -Preferred Stock - Non Redeemable, Net -Common Stock, Total 0.69Additional Paid-In Capital 32,981.31Retained Earnings (Accumulated Deficit) 89,223.00Treasury Stock - Common -Other Equity, Total -1,788.00Total Equity 120,331.00Total Liabilities & Shareholders' Equity 147,461.00Shares Outs - Common Stock Primary Issue -Total Common Shares Outstanding 687.35

INCOME STATEMENT

Google

Yahoo

In Millions of USD (except for per share items) 2015GOOGLE

Revenue 74,989.00Other Revenue, Total -Total Revenue 74,989.00Cost of Revenue, Total 28,164 Gross Profit 46,825.00Selling/General/Admin. Expenses, Total 15,183.00Research & Development 12,282.00Depreciation/Amortization -Interest Expense(Income) - Net Operating -Unusual Expense (Income) -Other Operating Expenses, Total -Total Operating Expense 55,629 Operating Income 19,360.00Interest Income(Expense), Net Non-Operating -Gain (Loss) on Sale of Assets 0Other, Net 256 Income Before Tax 19,651 Income After Tax 16,348.00Minority Interest -

Equity In Affiliates -Net Income Before Extra. Items 16,348.00Accounting Change -Discontinued Operations -Extraordinary Item -Net Income 16,348.00Preferred Dividends -Income Available to Common Excl. Extra Items 15,826 Income Available to Common Incl. Extra Items 15,826.00Basic Weighted Average Shares -Basic EPS Excluding Extraordinary Items -Basic EPS Including Extraordinary Items -Dilution Adjustment 0Diluted Weighted Average Shares 693 Diluted EPS Excluding Extraordinary Items 23 Diluted EPS Including Extraordinary Items -Dividends per Share - Common Stock Primary Issue 0Gross Dividends - Common Stock -Net Income after Stock Based Comp. Expense -Basic EPS after Stock Based Comp. Expense -Diluted EPS after Stock Based Comp. Expense -Depreciation, Supplemental -Total Special Items -Normalized Income Before Taxes -Effect of Special Items on Income Taxes -Income Taxes Ex. Impact of Special Items -Normalized Income After Taxes -Normalized Income Avail to Common -Basic Normalized EPS -Diluted Normalized EPS 22.84

BALANCE

Yahoo

2015 2014 2013YAHOO GOOGLE YAHOO GOOGLE

1,631.91 8,484.00 2,664.10 8,989.004,225.11 46,048.00 5,327.41 39,819.005,857.02 64,395.00 7,991.51 58,717.001,047.50 9,383.00 1,032.70 8,882.00- - - -1,435.70 10,849.00 1,129.87 9,390.00- - - -87.84 2,560.00 132.31 3,021.00126.75 852.00 190.73 1,758.00

$7,507 78,656.00 9,444.42 72,886.004,265.56 32,746.00 3,905.65 23,837.00-2,718.24 -8,863.00 -2,417.96 -7,313.00808.11 15,599.00 5,152.57 11,492.00347.27 4,607.00 470.84 6,066.0034,734.16 3,079.00 44,670.61 1,976.00259.78 3,363.00 481.21 1,976.0045,203.97 129,187.00 61,707.34 110,920.00208.69 1,715.00 238.02 2,453.00684.80 7,473.00 660.09 6,253.000.00 2,000.00 0.00 0.00

- 9.00 - 3,009.00383.89 5,582.00 3,616.87 4,193.00

$1,277 16,779.00 4,514.98 15,908.001,233.48 2,992.00 1,170.42 1,990.00118.69 236.00 143.09 246.001,352.17 3,228.00 1,313.52 2,236.001,352.17 5,237.00 1,313.52 5,245.0013,467.19 758.00 17,072.47 1,947.0035.88 - 43.76 -27.80 4,562.00 20.77 3,520.0016,160.43 25,327.00 22,965.50 23,611.00- - - -- - - 0.000.96 0.68 0.94 0.678,807.27 28,766.32 8,499.48 25,921.334,570.81 75,066.00 8,934.24 61,262.00-911.53 - -712.46 --342.99 -394.00 -67.19 75.0029,043.54 103,860.00 38,741.84 87,309.0045,203.97 129,187.00 61,707.34 110,920.00- - - -945.85 680.17 936.84 672.59

INCOME STATEMENT

2015 2014 2014 2013YAHOO GOOGLE YAHOO GOOGLE

4,968.30 66,001.00 4,618.13 55,519.00- - - -

4,968.30 66,001.00 4,618.13 55,519.00$2,078 $25,313 $1,298 $21,993

2,890.55 40,688.00 3,319.82 33,526.001,768.52 13,982.00 1,809.01 10,986.001,177.92 9,832.00 1,207.15 7,137.00

79.04 - 66.75 -- - - -

4,613.56 378 93.97 -- - - -

$9,717 $49,505 $4,475 $40,116-4,748.49 16,496.00 142.94 15,403.00

- - - -0 0 10,319.44 -57

-$16 $178 $93 $252-$4,824 $17,259 $10,512 $15,899

-4,734.68 13,620.00 6,474.28 13,160.00-7.97 - -10.41 -

$384 - $1,058 --4,359.08 13,620.00 7,521.73 13,160.00

- - - -- - - -- - - -

-4,359.08 14,136.00 7,521.73 12,733.00- - - -

-$4,359 $13,620 $7,522 $13,160-4,359.08 14,136.00 7,521.66 12,733.00

- - - -- - - -- - - -

0 0 - 0$939 $687 $1,004 $737

-$5 $20 $7 $18- - - -- 0 - 0- - - -- - - -- - - -- - - -- - - -- - - -- - - -- - - -- - - -- - - -- - - -- - - -

-1.45 20.26 1.22 17.92

BALANCE

2013 2012YAHOO GOOGLE YAHOO

2,077.59 6,712.00 2,667.781,330.30 33,310.00 1,516.173,407.89 48,088.00 4,183.95979.56 7,885.00 1,008.45- - -1,016.96 8,585.00 1,050.20- 505.00 -103.10 2,132.00 74.27497.90 1,144.00 344.305,025.86 60,454.00 5,652.713,612.10 17,697.00 3,951.22-2,123.58 -5,843.00 -2,265.384,679.65 10,537.00 3,826.75417.81 7,473.00 153.975,040.92 1,469.00 5,522.06152.20 2,011.00 261.9116,804.96 93,798.00 17,103.25138.03 2,012.00 184.83572.20 5,497.00 767.170.00 0.00 0.00

- 2,549.00 -630.08 4,279.00 338.231,340.31 14,337.00 1,290.231,110.59 2,988.00 -44.00 - 37.001,154.59 2,988.00 37.001,154.59 5,537.00 37.00847.96 1,872.00 675.2755.69 - 45.40331.51 2,886.00 495.153,730.05 22,083.00 2,543.05- - -- 0.00 -1.01 0.33 1.198,688.30 22,834.67 9,563.354,267.43 48,342.00 5,792.46-200.23 - -1,368.041.41 -66.00 -13,074.91 71,715.00 14,560.2016,804.96 93,798.00 17,103.25- - -1,014.34 659.96 1,115.23

INCOME STATEMENT

2013 2012 2012YAHOO GOOGLE YAHOO

4,680.38 46,039.00 4,986.57- - -

4,680.38 46,039.00 4,986.57$1,349 $17,176 $1,621

3,331.00 28,863.00 3,366.001,700.38 8,946.00 1,641.821,008.49 6,083.00 885.82

44.84 - 35.82- - -

-12.63 - 236.17- - -

$4,090 $32,205 $4,420589.93 13,834.00 566.37

- - -0 188 4,603.32

$0 $592 $3$633 $14,469 $5,214

479.89 11,553.00 3,274.16-10.29 - -5.12

$897 - $6761,366.28 11,553.00 3,945.48

- - -- - -- - -

1,366.28 10,737.00 3,945.48- - -

$1,366 $11,553 $3,9451,366.25 10,737.00 3,945.42

- - -- - -- - -- 0 -4.92

$1,071 $665 $1,203$1 $17 $3

- - -0 0 0

- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -

1.27 17.16 1

RATIOLiquidity RatiosCurrent Ratio = CA / CL

Cash Ratio = Cash / CL

Long-term Solvency RatiosTotal Debt Ratio = (TA – TE) / TA

Debt/Equity = TD / TE

Equity Multiplier = TA / TE = 1 + D/E

Long-term debt ratio = LTD / (LTD + TE)

Coverage RatiosTimes Interest Earned = EBIT / Interest

Receivables RatiosReceivables Turnover = Sales / Accounts Receivable

Days’ Sales in Receivables = 365 / Receivables Turnover

Total Asset TurnoverTotal Asset Turnover = Sales / Total Assets

Profitability MeasuresProfit Margin = Net Income / Sales

Return on Assets (ROA) = Net Income / Total Assets

Return on Equity (ROE) = Net Income / Total Equity

Market Value Measures

NUMERIC RATIO´S CALCULATIONS2015 2014 2013 2012

GOOGLE YAHOO GOOGLE YAHOO GOOGLE YAHOO GOOGLE YAHOO4.67 5.88 4.69 2.09 4.58 3.75 4.22 4.383.78 4.59 3.84 1.77 3.69 2.54 3.35 3.24

0.18 0.36 0.20 0.37 0.21 0.22 0.24 0.150.04 0.05 0.05 0.03 0.06 0.09 0.08 0.001.23 1.56 1.24 1.59 1.27 1.29 1.31 1.170.02 0.04 0.03 0.03 0.02 0.08 0.04 0.00

5.95 53.84 4.74 2.60 5.80 4.13 4.96 2.69

2.66 2.39 2.61 3.56 2.52 3.47 2.68 3.08137.08 152.64 139.99 102.61 144.59 105.23 136.17 118.62

3.82 -1.03 3.82 0.44 3.49 7.39 3.18 0.96

0.22 -0.88 0.21 1.63 0.23 0.29 0.23 0.79

0.83 0.90 0.82 0.72 0.80 2.16 0.74 0.7614% -15% 14% 19% 15% 10% 15% 27%

ANUAL VARIATION2015 2014 2013

GOOGLE YAHOO GOOGLE YAHOO GOOGLE YAHOO-0.02% 3.79% 0.11% -1.66% 0.37% -0.63%-0.05% 2.82% 0.15% -0.77% 0.34% -0.70%

-0.01% -0.01% -0.02% 0.15% -0.02% 0.07%-0.01% 0.01% -0.01% -0.05% -0.02% 0.09%-0.02% -0.04% -0.03% 0.31% -0.04% 0.11%-0.01% 0.01% 0.01% -0.05% -0.02% 0.08%

1.21% 51.24% -1.06% -1.53% 0.84% 1.44%

0.06% -1.17% 0.08% 0.09% -0.16% 0.39%-2.90% 50.03% -4.60% -2.62% 8.42% -13.39%

-0.01% -1.47% 0.33% -6.95% 0.31% 6.43%

0.00% -2.51% -0.02% 1.34% 0.00% -0.50%

0.01% 0.19% 0.02% -1.44% 0.06% 1.40%-0.02% -34.42% -0.97% 8.97% -0.39% -16.65%