Valuation and Capital Structure Report on Neiman Marcus Department Store

p Calculations for EPS

Debt financing

EPS (EBIT - Interest (1-taxes of shares of common stock outstanding

EPS (51 .37-7 .7 (1-0 .14 (13 .8

EPS 2 .72

Equity financing

EPS (EBIT -Interest (1-taxes of shares of common stock outstanding

EPS (51 .37-0 (1-0 .14 /13 .8

EPS 3 .2

Because EPS resulted from equity financing is higher so the equity financing is the best in this case

The results got by calculating EPS with the EBIT available from ) differ on 20 from the most recent expectations and

forecasts made by Yahoo Finance and they differ on 14 from the results provided by analytic research of John Asaeda (Neiman Marcus Group : A Top-Shelf Stock . The reason are based in different techniques approaches and methods of calculations . Because financial specialists from Yahoo and other companies use more accurate and recent data , along with calculations of risks , previous statistics , etc . their results seem more reliable . But at the same time , even for past years different business revues give different data that differ on some 10-15 in different sources

To make the calculated EPS more accurate we can calculate the difference of EPS calculated for equity and for debt financing that would be equal to : 3 .2 -2 .72 0 .48 , after those calculations we can estimate that the EPS will vary from 3 .2 to 3 .2 0 .48 (or from 3 .2 to 3 .68 , which looks more accurate and fits the calculations of John Asaeda

Moreover as John Asaeda writes in his article about Neiman Marcus Group Neiman Marcus Group (NMGA recent price 59 , which carries Standard Poor 's highest investment recommendation of 5-STARS , or buy , is a top pick among the department stores we cover . Reasons for the high rating include what we consider to be its leading competitive position in...