In your evaluation of the Grande Central case:
Determine the best value for Grande Central. Justify why you chose the method(s) you did from the following: Multiples (cash flow, ebit, etc.), Tangible Asset Value, or Discounted Cash Flow Approach.
What additional information would you like to see before proceeding further with this case?
Is this an investment opportunity that you would pursue? Why or why not?
Grande General Financial Statements 1998 1999 2000 2001 2002 Income Statement Sales COGS Gross Margin 1,100,000 550,000 550,000 1,215,000 600,000 615,000 1,500,000 732,000 7 68,000 1,800,000 822,000| 978,000 2,200,000 995,000 1,205,000 Operating Expenses EBIT Taxes Net Income 500,000 50,000 15,000 35,000 520,000 95,000 29,000 66,000 600,000 168,000 50,000 118,000 720,000 258,000 77,000 181,000 795,000 410,000 123,000 287,000 11 101,VUUT Cash Flow Cash In Cash Out Net Cash Flow from Operations 1,014,000 945,000 69,000 1,098,000 1,014,000 84,000 1,360,000 1,250,000 110,000 1,617,000 1,430,000 187,000 1,996,000 1,760,000 236,000 Balance Sheet Cash Inventory Accounts Receivable Current Assets Land Buildings Equipment Total Assets 12,000 41,000 80,000 133,000 35,000 612,000 84,000 864,000 19,000 47,000 102,000 168,000 35,000 567,000 190,000 960,000 22,000 59,000 124,000 205,000 35,000 505,000 171,000 916,000 23,000 65,000 148,000 236,000 35,000 459,000 241,000 971,000 21,000 80,000 187,000 288,000 35,000 414,000 214,000 951,000 Accounts Payable Notes Payable Current Liabilities Long Term Debt Total Liabilities Owners Equity Net Worth Total Liabilities & Equity 36,000 21,000 57,000 121,000 178,000 686,000 864,000 46,000 6,000 52,000 225,000 277,000 683,000 960,000 51,000 7,000 58,000 211,000 269,000 647,000 916,000 61,000 9,000 70,000 278,000 348,000 623,000 971,000 71,000 6,000 77,000 261,000 338,000 613,000 951,000 160001 Grande General Financial Statements 1998 1999 2000 2001 2002 Income Statement Sales COGS Gross Margin 1,100,000 550,000 550,000 1,215,000 600,000 615,000 1,500,000 732,000 7 68,000 1,800,000 822,000| 978,000 2,200,000 995,000 1,205,000 Operating Expenses EBIT Taxes Net Income 500,000 50,000 15,000 35,000 520,000 95,000 29,000 66,000 600,000 168,000 50,000 118,000 720,000 258,000 77,000 181,000 795,000 410,000 123,000 287,000 11 101,VUUT Cash Flow Cash In Cash Out Net Cash Flow from Operations 1,014,000 945,000 69,000 1,098,000 1,014,000 84,000 1,360,000 1,250,000 110,000 1,617,000 1,430,000 187,000 1,996,000 1,760,000 236,000 Balance Sheet Cash Inventory Accounts Receivable Current Assets Land Buildings Equipment Total Assets 12,000 41,000 80,000 133,000 35,000 612,000 84,000 864,000 19,000 47,000 102,000 168,000 35,000 567,000 190,000 960,000 22,000 59,000 124,000 205,000 35,000 505,000 171,000 916,000 23,000 65,000 148,000 236,000 35,000 459,000 241,000 971,000 21,000 80,000 187,000 288,000 35,000 414,000 214,000 951,000 Accounts Payable Notes Payable Current Liabilities Long Term Debt Total Liabilities Owners Equity Net Worth Total Liabilities & Equity 36,000 21,000 57,000 121,000 178,000 686,000 864,000 46,000 6,000 52,000 225,000 277,000 683,000 960,000 51,000 7,000 58,000 211,000 269,000 647,000 916,000 61,000 9,000 70,000 278,000 348,000 623,000 971,000 71,000 6,000 77,000 261,000 338,000 613,000 951,000 160001
