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can you answer this question for me as soon as possible and using excel sheet ? Snowflake is looking at another potential acquisition in the
can you answer this question for me as soon as possible and using excel sheet ?
Snowflake is looking at another potential acquisition in the biomed field. The vaccine developer, Vac-Med, has projected sales of $225 million next year. Costs (including depreciation) are expected to be 68 percent of sales and depreciation and net investment (PPE and working capital) are expected to be 4 percent and 7 percent of sales, respectively. Sales are expected to grow at 25 percent the following year, with the growth rate declining by 5 percentage points per year until the growth rate reaches 5 percent, where it is expected to then drop to 4 percent the next year and remain there indefinitely. Vac-Med has debt of $165 million outstanding. There are 2.5 million shares of stock outstanding and investors require a return of 14 percent on the company's stock. The corporate tax rate is 23 percent. You are interested in determining the value of VacMed today. In answering, provide an explicit detailing of the following: 1_What is your estimate of the value of the operating cash flow in T2? Show your answer to one decimal point - For example: 12.4. 2_What is your estimate of the Horizon value at the end of the non-constant growth period? Show your answer to one decimal point - For example: 12.4. 3_Provide your estimate of the Value of Operations at To. Show your answer to one decimal point For example: 12.4. 4_Estimate the Equity value per share at To. Show your answer to one decimal point - For example: 12.4. 5_What is your estimate of the Equity value if the firm uses a terminal multiple of 10x operating cash flow? Show your answer to one decimal point - For example: 12.4
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