Question
IBM is in negotiations to buy BMI. Given the information below, estimate the enterprise value, equity value and price per share of BMI (as of
IBM is in negotiations to buy BMI. Given the information below, estimate the enterprise value, equity value and price per share of BMI (as of the end of 2020).
Shares outstanding: 50 million
Excess cash: $119 million
Debt: $30 million
Projected FCF in 2021: $45 million
Projected FCF in 2022: $57 million
Perpetual growth rate of FCF beyond 2022: 5%
Discount rate: 9.4%
The enterprise value in 2020 is ___million.
The equity value is ____m
The value of BMI per share is _______
IBM is in negotiations to buy BMI. Given the information below, estimate the enterprise value, equity value and price per share of BMI (as of the end of 2020).
Shares outstanding: 50 million
Excess cash: $119 million
Debt: $30 million
Projected FCF in 2021: $45 million
Projected FCF in 2022: $57 million
Perpetual growth rate of FCF beyond 2022: 5%
Discount rate: 9.4%
The enterprise value in 2020 is ___million.
The equity value is ____m
The value of BMI per share is _______Step by Step Solution
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Intermediate Microeconomics And Its Application
Authors: Walter Nicholson, Christopher M. Snyder
13th Edition
0357133064, 978-0357133064
