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Can someone please tell me how this is done?! I'v also attached a file with two tabs. Given the following assumptions, estimate the value of
Can someone please tell me how this is done?! I'v also attached a file with two tabs.
Given the following assumptions, estimate the value of the company. using a Discounted Cash Flow (DCF) analysis to assist in the price negotiations:
- Debt free cash flow - Year 1: $500K
- Debt free cash flow - Year 2: $750K
- Debt free cash flow - Year 3: $1,200
- Debt free cash flow - Year 4: $1,300
- Debt free cash flow - Year 5: $1,400
- Terminal value at end of Year 5: $13,200
- Discount rate equal to WACC rate ? 15%
- Interest bearing debt at valuation date - $500K
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