Question
I need assistance with the following: ABC Inc. is looking to buy another firm in its industry. It is being offered an established business whose
I need assistance with the following:
ABC Inc. is looking to buy another firm in its industry. It is being offered an established business whose owner wants to sell. ABC's CFO gave you the numbers and asked you to calculate its price. The CFO asks that you use the data below. What should ABC consider paying?
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2 = O 00 ~1 O Lh e W R 2 = e ABC Inc. is looking to buy another firm in its industry. It is being offered an established business whose owner wants to
sell. ABC's CFO gave vou the numbers and asked you to calculate its price. The CFO asks that you use the data below. What should ABC consider
paying? Valuation Costs (% of revenne): 1 2 3 4 5 Ay Wages and benefits 45% Sales 482.1 Aircraft and fuel costs 39% Expenses: Gene...
A B D E F G H I J K 1 2 3 4 ABC Inc. is looking to buy another firm in its industry. It is being offered an established business whose owner wants to sell. ABC's CFO gave you the numbers and asked you to calculate its price. The CFO asks that you use the data below. What should ABC consider paying? 5 6 7 Valuation Yrs. 1-5 TV 8 Revenue growth 2.7% 2.6% 9 Costs (% of revenue): 10 Wages and benefits 45% Sales 11 Aircraft and fuel costs 39% Expenses: 12 General and administrative 10% Wages and benefits 13 Rates: 14 Tax 21.0% 15 Discount 7.0% 16 Taxes 17 Results Aircraft and fuel costs General and administrative Operating Income Net Income after Tax 18 PV of NCF (incl. TV) 19 Cash 20 - Debt 21 Value of equity 22 23 Cash flow adjustments: 12.0 Working Capital 18.0 Capital Expenditures Net Cash Flows Cash Flows (in '000 $) 1 482.1 2 3 4 5 TV (4.0) (4.1) (4.2) (4.3) (4.4) (9.0) (9.1) (9.2) (9.3) (9.4)
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