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Prepare firm valuation using the following: Discounted cash flow: Free cash flow model Market multiple method Determine the WACC (must show work) Cost of debt
Prepare firm valuation using the following:
- Discounted cash flow: Free cash flow model
- Market multiple method
- Determine the WACC (must show work)
- Cost of debt capital:
- Review the 10-K footnotes in the Long-Term debt notes.
- Estimate borrowing rate based on the company's financial health.
- Cost of equity capital: calculate using the CAPM model.
- Beta: compare betas from various online sites and determine the appropriate beta.
- Market risk premium: determine the appropriate market risk premium from various online sites and other analysts reports.
- Risk free rate: use the 10 year treasury note
- Cost of debt capital:
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To prepare a firm valuation we will use the following methods Discounted Cash Flow DCF Free Cash Flow Model Market Multiple Method Before we can use t...
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
