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Given the following assumptions, estimate the value of Miley Manufacturing, Inc. using a Discounted Cash Flow (DCF) analysis to assist in the price negotiations: Debt
Given the following assumptions, estimate the value of Miley Manufacturing, Inc. using a Discounted Cash Flow (DCF) analysis to assist in the price negotiations:
- Debt free cash flow - Year 1: $500K
- Debt free cash flow - Year 2: $750K
- Debt free cash flow - Year 3: $1,200
- Debt free cash flow - Year 4: $1,300
- Debt free cash flow - Year 5: $1,400
- Terminal value at end of Year 5: $13,200
- Discount rate equal to WACC rate - 15%
- Interest-bearing debt at valuation date - $500K
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
