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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 server-based customer relationship management technology firm that started was created via merger with Teragon Capital- an arrangement initiated by 4th Point Capital which is a private equity fund specializing in this field. The firm is known for its abilities in artificial intelligence (AI)/augmented 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 (Ziromax).Dysinger 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: 567,439,518,663,498,782,427,565, and 317,988 units respectively. These results are contingent on the company keeping its average selling price per unit of $297 for the next two years and $229 in the following three years. Thereafter, growth in unit sales are expected to be 3.29% 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 $118.35 growing at 2.57% per year for the first 5 years and 2.95% per year indefinitely thereafter while overall fixed costs are estimated to be $21,457,700 annually for the first year and grow 3.09% 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 $36,832,800 and due to the nature of the investments that the company makes, an IRS ruling deems depreciation to be based on the seven-year MACRS schedule. In the terminal phase of growth, an additional investment strategy is expected to change in favor of maintaining the current AI/AR service opportunities that are projected to become annuitized going forward. Associated with this, an anticipated average annual depreciation charge of $713,500 is expected and which will follow straight-line depreciation method with a 3-year time horizon strategy. To support sales, the companys investment in working capital is projected to be 14.34% of yearly sales for the first 5 years. The terminal phase is expected to elicit slower growth for which the resulting investment in working capital is projected to slow to a 3.87% annual growth rate thereafter.The marginal corporate income tax rate is expected to average 21.15% 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 3.57% indefinitely. Looking at past numbers on an average basis, the debt-equity ratio has consistently centered around 114% for which Dysingers current debt level is $31,625,750 with an average maturity of 6 years and an interest rate on this debt averaging 6.835%. After further analysis, the Treasurer is comfortable using an equity beta of 1.6325 while the risk-free rate of return is given as 2.945% and the market rate of return is 10.56%. Currently there are 1,946,540 shares of common stock outstanding. You have been hired by Dysinger Inc. to determine the following:1) Operating Cash Flow: First 5 years and Terminal Phase2) Free Cash Flow: First 5 years and Terminal Phase3) Asset Beta (Industry Beta)4) Discount Rate5) Asset Value6) Equity Value7) Stock Price8) Recommendations to enhance Dysingers stock priceYour presentation must be in the form of a single professionally prepared Excel spreadsheet-multiple 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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