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Dysinger Inc. is an up and coming server - based customer relationship management technology firm that started was created via merger with Teragon Capital -
Dysinger Inc. is an up and coming serverbased customer relationship management technology firm that started was created via merger with Teragon Capital an arrangement initiated by th Point Capital which is a private equity fund specializing in this field. The firm is known for its abilities in artificial intelligence AIaugmented reality AR and is in Fall River, Massachusetts. Due to the companys belief in focus and specialization and being a recognized industry leader, the company primarily develops, produces, markets, and services a single market leading product ZiromaxDysinger hired a technology consulting firm Trend Analysis Ventures, Inc. to estimate unit sales for the next five years for which market research points to the following results: and units respectively. These results are contingent on the company keeping its average selling price per unit of $ for the next two years and $ in the following three years. Thereafter, growth in unit sales are expected to be indefinitely. The Executive Committee of the board authorized and performed an internal audit for which it was determined that the company can produce Ziromax at a variable cost per unit of $ growing at per year for the first years and per year indefinitely thereafter while overall fixed costs are estimated to be $ annually for the first year and grow per year indefinitely.Based on the market research and the internal audit, it is believed the company needs to increase expand capacity to meet projected unit sales. As such, necessary initial capital expenditures are projected to be $ and due to the nature of the investments that the company makes, an IRS ruling deems depreciation to be based on the sevenyear MACRS schedule. In the terminal phase of growth, an additional investment strategy is expected to change in favor of maintaining the current AIAR service opportunities that are projected to become annuitized going forward. Associated with this, an anticipated average annual depreciation charge of $ is expected and which will follow straightline depreciation method with a year time horizon strategy. To support sales, the companys investment in working capital is projected to be of yearly sales for the first years. The terminal phase is expected to elicit slower growth for which the resulting investment in working capital is projected to slow to a annual growth rate thereafter.The marginal corporate income tax rate is expected to average assuming no changes to the marginal corporate income tax rate and the projected annual growth rate of Free Cash Flow FCF in the terminal phase is expected to be approximately indefinitely. Looking at past numbers on an average basis, the debtequity ratio has consistently centered around for which Dysingers current debt level is $ with an average maturity of years and an interest rate on this debt averaging After further analysis, the Treasurer is comfortable using an equity beta of while the riskfree rate of return is given as and the market rate of return is Currently there are shares of common stock outstanding. You have been hired by Dysinger Inc. to determine the following: Operating Cash Flow: First years and Terminal Phase Free Cash Flow: First years and Terminal Phase Asset Beta Industry Beta Discount Rate Asset Value Equity Value Stock Price Recommendations to enhance Dysingers stock priceYour presentation must be in the form of a single professionally prepared Excel spreadsheetmultiple documents are not allowed! Focus on eye appeal that will create a flowing development throughout so clean it up and label all references. You must NOT have constant number inputs which would destroy cell referencing for future use. Be careful, you will be penalized for any and all cell referencing that is destroyed. Additionally, you are to have separate worksheet tabs for Data Entry, Operating Cash Flow, Free Cash Flow, Asset Beta, Discount Rate, Asset Value, Equity Value, Stock Price, and Recommendation
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