Table 19.20 shows the sensitivity analysis for KKPs investment in Ideko. Given this information, do you recommend
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Table 19.20 shows the sensitivity analysis for KKP’s investment in Ideko. Given this information, do you recommend the acquisition of Ideko?
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TABLE 19.20 SPREADSHEET Sensitivity Analysis for KKP's Investment in Ideko Exit EBITDA Multiple Implied Long-Run Growth Rate Ideko Enterprise Value (in $ million) KKP Equity Value (in $ million) KKP IRR 6.0 1.60% 151.4 51.4 14.8% 7.0 8.0 9.1 11.0 3.43% 4.53% 5.34% 5.81% 6.21% 171.3 191.2 213.2 231.1 251.0 71.3 91.2 113.2 131.1 151.0 22.1% 28.0% 33.3% 37.1% 40.8% 10.0 Unlevered Cost of Capital 9.0% Implied Long-Run Growth Rate 3.86% Ideko Enterprise Value (in $ million) 222.1 KKP Equity Value (in $ million) 122.1 10.0% 11.0% 12.0% 13.0% 14.0% 5.34% 6.81% 8.29% 9.76% 11.24% 213.2 204.7 196.7 113.2 104.7 189.1 181.9 96.7 89.1 81.9
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Based on the information in Table 1920 I would not recommend the acquisition of Ideko The table show...View the full answer
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