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A competing Equity/Debt investor team (CT for short) is also considering buying JQT. CT agrees with your assumptions and approach except that a) they believe

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A competing Equity/Debt investor team (CT for short) is also considering buying JQT. CT agrees with your assumptions and approach except that a) they believe that JQT's optimal capital structure is 60% D/(D+E) b) 100% of the stock (calculated with CT's D/(D+E) ratio) will be resold for an estimated $96.00 MM Question 6 1 pts What is CT's estimated Sp(D+E) = Resale price of stock plus loan principal repayment? Question 7 1 pts Assume for this question (irrespective of answers to any other questions) that CT's Estimate of Sp(D+E) is $205.20 and CT's Estimate of JQT's FCF(D+E) is $6.825. Using these numbers, what is CT's estimate of JQT's Enterprise Value? Question 8 1 pts What is the Market's view of JQT's pre-purchase Enterprise Value? (IE: how much would it cost to purchase all of JQT's stock and pay off all its debt, before any purchase/restructuring by your firm or by CT?). > Question 9 1 pts Assume for this question (irrespective of answers to any other questions) that CT's estimate of of JQT's Enterprise Value is $194.94 Using this number, what is the NPV of this Buy/Manage/Sell project to CT's Equity/Debt Team? Question 10 1 pts Based on CT's estimated NPV for this project, should CT go ahead with it? Answer Y, N or Can't Determine, and provide one reason. No Yes Can't Determine U Because the NPV > 0 Because the NPV Question 9 1 pts Assume for this question (irrespective of answers to any other questions) that CT's estimate of of JQT's Enterprise Value is $194.94 Using this number, what is the NPV of this Buy/Manage/Sell project to CT's Equity/Debt Team? Question 10 1 pts Based on CT's estimated NPV for this project, should CT go ahead with it? Answer Y, N or Can't Determine, and provide one reason. No Yes Can't Determine U Because the NPV > 0 Because the NPV

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