Question
1. Based on a discounted cash flow analysis and using the WACC as the discount rate, what is the implied equity value of Company XYZ
1. Based on a discounted cash flow analysis and using the WACC as the discount rate, what is the implied equity value of Company XYZ on January 1, 2021?
2. What is the implied equity value at the transaction date (June 15, 2024) based on a discounted cash flow analysis using the WACC as the discount rate, and assuming $50 million of cash and zero debt?
3. Assuming an investment is made on June 15, 2024 in an amount equal to 1.5x the equity value at that date, what is the investor IRR?
4. Assuming an investment is made on June 15, 2024 in an amount equal to 1.5x the equity value at that date, what is the equity IRR if the investment is funded with 70% debt?
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Stochastic Filtering With Applications In Finance
Authors: Bhar Ramaprasad
1st Edition
9814304859, 9789814304856
