Question
95. You are considering buying a company using leveraged buyout. The company is projected to have sales of $186 million in the first year after
95.
You are considering buying a company using leveraged buyout.
The company is projected to have sales of $186 million in the first year after buyout. The cost of sales and other admin expenses are 45% of the sales. Depreciation and amortization are 11% of the sale. Tax rate is 44%. There is no change in net working capital expenditure that can foresee. You plan onborrowing $890 mil at interest rate of 5.3% per year and put $143 million of your own money as equity to buy the company
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The Price-to-sales multiple that you paying for this company is _______
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The Price-to-EBITDA multiple that you paying for this company is ________
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The net income of the company in the first year after the buyout is ________ mil
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The cash flows that have generated during the first year is ________ mil
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Assuming that all the cash flows have been used to pay down debt after the first year, the interest expense during the second year is _________ mil
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