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Questions for Mercury Athletic Footwear Is Mercury an appropriate target for AGI? Why or why not? Review the assumptions for projecting the cash flows of

Questions for Mercury Athletic Footwear

  1. Is Mercury an appropriate target for AGI? Why or why not?
  2. Review the assumptions for projecting the cash flows of the project? Are they appropriate? Would you make any changes?
  3. Estimate the FCF of Mercury for the first 10 years.
  4. Assuming a cost of capital of 13.45% estimate the enterprise value of Mercury.
  5. Do you regard the value you obtained as conservative or aggressive? Why?
  6. What sensitivity analysis would you do to the base case value?

Please help me answer the sixth question

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