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1. Discounted Cash Flow (DCF) Valuation = { PV (Free Cash Flow) A company has the following free cash flow in millions. What is its

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1. Discounted Cash Flow (DCF) Valuation = { PV (Free Cash Flow) A company has the following free cash flow in millions. What is its value using the discounted cash flow method assuming a discount rate of 20% per year? Recall that PVIF (k, n) = 1/((1+k)") Discounted FCF 10.0 FCF Present Value Year (Free Cash Flow) Interest Factor 1 2 11.0 3 12.0 4 13.0 5 14.0 6 15.0 7 16.0 8 18.0 9 20.0 10 22.0 Company Value: Multiplier methods of valuation are based on what the market will pay for a particular attribute such as EBITDA, Sales or Net Income. Market capitalization (Market Cap) is an estimate of what the market will pay for an entire company. The market might be willing to pay $2.00 for a pound of apples, or $3.25 for a dollar of EBITDA, or $0.85 for a dollar of sales or $6 for a dollar of net income. Adjusted Net Company Sales EBITDA Income Customers Os Shares Price Market Cap Garden State Cable 50,000,000 15,000,000 6,000,000 42.000 10,000,000 5.50 55,000,000 Lehigh Valley Cable 40,000,000 12,000,000 4.800,000 36,000 5,000,000 7.60 38,000,000 Cable Co of America 160,000,000 20,000,000 7,200,000 55,000 10,000,000 6.50 65,000,000 North Georgia Cable 30,000,000 9.000.000 4,000,000 27.000 1,000,000 35.00 35,000,000 Asheville Cable Co.20,000,000 8,000,000 2,000,000 18.000 2.000.000 11.00 22,000,000 Totals: 2. What is the EBITDA Multiplier for the cable industry? 3. Provo Cable, Inc. has EBITDA of S7 million. What is Provo's estimated value? 4. What is the Sales Multiplier for the cable industry? 5. Provo Cable, Inc. has sales of $21 million. What is its estimated value? 6. What is the Adjusted Net Income Multiplier for the cable industry? 7. Provo Cable, Inc. has an adjusted net income of $2.4 million. What is its estimated value? | 8. What is the Customer Multiplier for the cable industry? 9. Provo Cable, Inc. has 21,000 customers. What is its estimated value

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