Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

11. Find the value of Cranium: Cranium management performed a normal DCF valuation with a 50% Debt to Value ratio with $5000 in debt at

11. Find the value of Cranium: Cranium management performed a normal DCF valuation with a 50% Debt to Value ratio with $5000 in debt at a rate of 6%. For the terminal value they assumed a constant growth rate forever of 3.6% and WACC of 8.6%. 1 Year Net Income Depreciation Interest Exp Change NWC Capex Free Cash Flow -150 1000 300 -100 200 What is the enterprise value of Cranium today? V= 2 0 900 300 100 200 900 3 30 900 300 0 200 1030 What is the value of Cranium equity today if the forecast is correct? Y.eg=
image text in transcribed
11. Find the value of Cranium: Cranium management performed a normal DCF valuation with a 50% Debt to Value ratio with $5000 in debt at a rate of 6%. For the terminal value they assumed a constant growth rate forever of 3.6% and WACC of 8.6%. What is the enterprise value of Cranium today? V= What is the value of Cranlum equity today If the foreenst is correct? Yege

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Frontier Markets Evidence From Middle East North Africa And International Comparative Studies

Authors: Panagiotis Andrikopoulos , Greg N. Gregoriou , Vasileios Kallinterakis

1st Edition

0128092009,0128094915

More Books

Students also viewed these Finance questions