cast. For instance, APV approach is gencrally easier to implement when debt kerels are known, whereas WACC or FIE are casier to implement when debl raties are knewnn. Case: DwPant - Sule of Peyformware Coatingr Divisiow - Have a good usderstanding of how private equity funds works (who are the gencral partners, who are the limited partners, ete.) - Understand all the technical terms and concepts that you came across in this case (purchase price maltiples, multiphe arbitrage, terminal value multiple, etc.). - Thocoughly understand Exdibur 9 of the casc, and akso its solation. - Understand how high levels of debt can increase the Enterprise Value LBO funds are williag to pay for target firms o. Understand how the requircd rate of return on equity changes at differen stages of the L.BO dependine on how the debe is being paid down. - Be able to calculale these changing required rates of returt using the "recursive" appeoach. - Relatedly, be able to calculate the PV of FTE at different pocints in time. Casei SSAA - Phe Bimvel - Understand the difference betwoen debt and net dohr, and why the latier is mote important for the parposes of calculating exterprise value. * Understand the implication of goodwill amoetiration espense oe calculation of financial cash flows. - Uriderstand why IS5' cnierprise value was approximately the same with and uichouf the pursait of acquisition strategies. Approciate the fact that while acqaisitions can spar revenac growth, they abso cause capital expenditures to go up. - Know whes and how to calculate the terminal valme of interest tax shields when calculatng Enterprise Value using the APY approach. Understand, very clearly, why we calculaned terninal value of interest tax shaelds in the ISS case but NOT in the DuPpont case. Relatedly, know when to apply multiple valuation approaches (WACC, APV, FII: ete. ) in one framewark to derive the liaterprise Value of the firm. - Understand how the saandard formala for calculatine FIH changes when the firm has excess cash lying around. Spocifically, the amoumt available to repay dcb increases if the firm has cxcess cash lying anound. * Understand what is meant by "dividend recapitalization" (dekt-financed drvidcnd), and when and why P'E fims tay ese it