Question
Estimate the Enterprise Value and the Equity Value of Transocean as of December 31, 2020 based on Income approach and Market approach using the information
Estimate the Enterprise Value and the Equity Value of Transocean as of December 31, 2020 based on Income approach and Market approach using the information available in the workbook and the assumptions below.
Use below WACC assumptions
| Long-term US treasury bond yield | 0.93% |
| Local country risk premium | 0.0% |
| Currency risk premium | 0.0% |
| Equity risk premium | 6.0% |
| Company specific premium | 4.0% |
| Industry lending rates | Avg. cost of debt +4% premium |
| Statutory tax rate | 26.0% |
| Industry Debt to Equity ratio | 70.0% |
Forecast assumptions
Terminal growth: 2% p.a.
Other instructions:
Select appropriate peers from the Comparable Tab in the Excel file and use Calcs tab to calculate valuation multiples, unlevered beta and industry lending rates.
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Financial Statements A Step By Step Guide To Understanding And Creating Financial Reports
Authors: Thomas Ittelson
1st Edition
1632652072, 978-1632652072
