Question 1 Assuming your firm purchases Company Z, what is the amount of loan that Company Z will take out at the time of purchase? Report your answer to two decimal places. Question 2 Why did Company Z take out this loan? To partially pay the the amount required to purchase the firm from its existing owners. To payoff the firm's existing debt. To provide cash for the new owners to withdraw as dividends. Not enough information is provided to answer this question The loan was taken out inappropriately. My PE firm should have taken out the loan. Question 3 How much of Company Z's purchase price will your PE firm pay from its own funds? Report your answer to two decimal places. Question 4 Using the CAPM model, what is re for the recapitalized Company Z? Report your answer to 4 decimal places. Do not represent your answer as a percent Question 5 What is the absolute value of the annual interest expense of the recapitalized Company Z? Report your answer to 4 decimal places. Question 6 What is the annual EBT of the recapitalized Company Z? Report your answer to 4 decimal places. Question 7 What is the absolute value of the annual tax expense of the recapitalized Company Z? Report your answer to 4 decimal places. Question 8 What is the annual net income of the recapitalized Company Z? Report your answer to 4 decimal places. Question 9 What is the annual Free Cash Flow of the recapitalized Company Z? Report your answer to 4 decimal places. Question 10 What is the NPV for the project "should we purchase Company Z, given all the information compiled above?" Report your answer to two decimal places. Question 11 Should your firm purchase Company Z and recapitalize it as envisioned above? O No Yes Not enough information is provided to answer this question. Question 1 Assuming your firm purchases Company Z, what is the amount of loan that Company Z will take out at the time of purchase? Report your answer to two decimal places. Question 2 Why did Company Z take out this loan? To partially pay the the amount required to purchase the firm from its existing owners. To payoff the firm's existing debt. To provide cash for the new owners to withdraw as dividends. Not enough information is provided to answer this question The loan was taken out inappropriately. My PE firm should have taken out the loan. Question 3 How much of Company Z's purchase price will your PE firm pay from its own funds? Report your answer to two decimal places. Question 4 Using the CAPM model, what is re for the recapitalized Company Z? Report your answer to 4 decimal places. Do not represent your answer as a percent Question 5 What is the absolute value of the annual interest expense of the recapitalized Company Z? Report your answer to 4 decimal places. Question 6 What is the annual EBT of the recapitalized Company Z? Report your answer to 4 decimal places. Question 7 What is the absolute value of the annual tax expense of the recapitalized Company Z? Report your answer to 4 decimal places. Question 8 What is the annual net income of the recapitalized Company Z? Report your answer to 4 decimal places. Question 9 What is the annual Free Cash Flow of the recapitalized Company Z? Report your answer to 4 decimal places. Question 10 What is the NPV for the project "should we purchase Company Z, given all the information compiled above?" Report your answer to two decimal places. Question 11 Should your firm purchase Company Z and recapitalize it as envisioned above? O No Yes Not enough information is provided to answer this
