I am not sure how to complete this spreadsheet. Please provide instructions or what this assignment requires.

Your Firm's Current EBITDA: $ 3,352,000 Step 1: Acquisition Target's EBITDA: 10% $ 335,200 NOTE: Problem gives you cost of debt and equity and WACC You will be required to figure out what % is equity vs debt (back into these numbers!). Step 2: Equity in deal Debt for deal % Component $ Amounts 8% 8% Step 3: Calculate Loan Payment schedule (you will need "P" and "I" for each yr); Step 4: Calculate depreciation Calculate amortization (of goodwill....if goodwill was created in the transactio). Goodwill is created if your purchase price for the entity is higher than the value of the assets purchased. For this analysis (*), amortize your goodwill on a straight-line basis for 25 yrs (*) This step is not the current "law in the land"...but worthwile exercise Step 5: Assume the entity survives in perpetuity; however, you are to assume the values of yrs 10 to infinity are incorporate Step 6: Create an Income statement....then extend this to an After Tax Cash flow statement Yr 0 1 2 All numbers below are made up as an example only) Purchase Price (4,580) EBITDA (no Growth) Int Exp Dep Exp Amort Exp Gross Profit Taxes Net Income After Tax Analysis: Net Income: Add: Dep Add: Amort Less: Principal 3 4 5 6 Less: CapEx (assume $0) After Tax Cash flow= Financial Analysis: Use purchase price, and after tax cash flows with your required rate of return (which rate? You need to select correct one) to g Do you buy? Yes or no? Perform the above analysis again...this time assume 100% equity (no debt; remove all cash flows due to debt). Calculate NPV and IRR here; does this answer differ from the above? That is, if leverage is the only reason to buy something, is that a good decision? Work cited 1. http://ir.tevapharm.com/phoenix.zhtml?c=73925&p=irol-reportsAnnual lue of the assets purchased. 10 to infinity are incorporated in a 2 X EBITDA value in yr 10 7 8 9 10 ed to select correct one) to get NPV and IRR answers. due to debt)