Teuer Furniture [B]: Case Questions As a member of Ms. Jerabek's team , you are responsible for estimating the value of Teuer Furniture as well as the value of one share of stock _ You should use a multiples approach to value the firm. The questions that you will be asked to submit through Canvas are listed below .There are two blank exhibits in the case spreadsheet _Completing these exhibits may help with your analysis 1) Calculate Teuer's multiples .Calculate the sales ; net income and cash flow from assets 1 (CPA ) multiples for Teuer at the end of 2012 and 2018 _ Using the DCF value of Teuer Furniture based on the nance team's assumptions .1 Use trailing multiples .2 By what percent did the price to sales multiple fall between 2012 and 2018 '5' If the price to sales multiple declined from 10 to 9 this is a 10% decline _ Enter your answer in percent rounded to one decimal (eg. a 10.0 % decline should be entered as 10.0 )_ 2) By what percent did the price to earnings multiple decline between 2012 and 2018 '3 Enter your answer in percent rounded to one decimal (eg. a 10.0 % decline should be entered as 10.0 )_ 3) 3y what percent did the price to cash ow multiple decline between 2012 and 2018 2 Enter your answer in percent rounded to one decimal (e.g. a 10.0 \"A: decline should be entered as 10.0 )_ 4) lWhy is the percentage decline in the three multiples different ".' Briey explain your logic in 4 to 6 sentences 5) Comparable firms .When you value a rm using a multiples approach you only use firms that are comparable to Teuer Furniture (the target rm )_ Each of the nine possible rms is in the same industry as Teuer Furniture . Based on the information in the case , pick a set of firms that you consider to be comparable to Teuer in the important dimensions _ On what dimensions should the rms be comparable to the target rm 2' Briey explain your logic in 4 to 6 sentences _ In class , I will expect you to contribute to the discussion by proposing and defending the rm characteristics which we should use to determine if the firms are comparable to Teuer and thus should be include or excluded from the analysis 1 This is the base case valuation which we completed in class. You should answer questions 1 through 4 based on the base case. You may use your own DCF valuation of Teuer Furniture to answer the discussion questions below, but make it clear which valuation you are using so I can follov.r your logic. 3 Multiples can be calculated as trailing multiples= using the last twelve months to calculate sales= earnings= or cash flow or multiples can be calculated as forward looking multiples {using the next twelve month forecast to estimate sales, earnings= or cash flow). For these questions, 1 want you to use trailing multiples (eg. valuet-\"earningsd
