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Rooksbridge Stock Evaluation

Valuation of Rooksbridge
            In this study, you are going to analyze and value a company using ratios across time, comparing them to industry averages, calculate a growth rate, determine the cost of capital, and use a variety of stock valuation models constant growth model to value Rooksbridge’s stock as of Dec. 2008. 
Below are Rooksbridge’s Income statements, Balance Sheets, and Statement of Cash Flows for 2004-2008.  Industry averages for key ratios are also given.

Rooksbridge
ANNUAL INCOME STATEMENT
 
 
   ($ MILLIONS, EXCEPT PER SHARE)
 
 
 
 
 
 
Dec-08
Dec-07
Dec-06
Dec-05
Dec-04
Sales
100,789.00
40,112.00
31,260.00
20,273.00
13,289.00
  Cost of Goods Sold
97,981.00
37,999.00
28,994.00
18,883.00
12,125.00
 
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Gross Profit
2,808.00
2,113.00
2,266.00
1,390.00
1,164.00
  Selling, General, &
 
 
 
 
 
     Administrative Expense
 
 
 
 
 
 
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Operating Income Before Deprec.
2,808.00
2,113.00
2,266.00
1,390.00
1,164.00
  Depreciation, Depletion, &
 
 
 
 
 
     Amortization
855
870
827
600
474
 
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Operating Profit
1,953.00
1,243.00
1,439.00
790
690
   Interest Expense
876
710
616
419
286
   Non-Operating Income/Expense
446
793
248
507
382
   Special Items
121
13
-39
-714
178
 
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Pretax Income
1,644.00
1,339.00
1,032.00
164
964
  Total Income Taxes
434
104
175
-90
271
  Minority Interest
231
211
154
149
109
 
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Income Before Extraordinary
 
 
 
 
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