TABLE OF CONTENTS In this appendix we present some context and parameters used in the financial model used for valuation. We also present the financial statements: IS, CB and BS. The macroeconomic variables used in the model were the goals agreed on between the International Monetary Fund and Colombia. In addition, the consultant made his own estimations for some of the variables (see Table B11.1).
| 2000 | 2001 | 2002 | 2003 | 2004 | 2005+ | |
|---|---|---|---|---|---|---|
| Payout ratio | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 10.00% |
| Domestic annual inflation rate per annum | 11.00% | 10.00% | 9.00% | 8.00% | 8.00% | 8.00% |
| IA index (PAAG) per annum | 11.00% | 10.00% | 9.00% | 8.00% | 8.00% | 8.00% |
| Foreign inflation rate (U.S.) | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% | 2.50% |
| Annual rate of change for the U.S. dollar | 9.38% | 7.32% | 6.34% | 5.37% | 5.37% | 5.37% |
| Cost of debt in foreign currency | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% | 9.00% |
| Cost of debt in domestic currency | 25.60% | 24.60% | 23.60% | 22.60% | 22.60% | 22.60% |
| Market interest rate for cash excess investment (DTF) | 15.00% | 14.00% | 13.00% | 12.00% | 12.00% | 12.00% |
The investment budget was taken from ALCATEL and JECR and Co. The amounts of investment were the following (see Table B11.2):
| Total investment | USD$ thousands | US$/line |
|---|---|---|
| Land | 109.30 | 6.63 |
| Buildings and civil works | 470.20 | 28.50 |
| Telephone networks | 5,216.20 | 316.13 |
| Commutation and power equipment | 6,543.80 | 396.60 |
| Transmission systems | 684.00 | 41.46 |
| Machinery and equipment | 279.70 | 16.95 |
| Feasibility studies and initial operation | 365.90 | 22.18 |
| Working capital | 886.10 | 53.70 |
