Question
The first acquisition target is a privately held company in a mature industry. The company currently has free cash flow of $20 million. Its WACC
The first acquisition target is a privately held company in a mature industry. The company currently has free cash flow of $20 million. Its WACC is 10% and it is expected to grow at a constant rate of 5%.The company has marketable securities of $100 million. It is financed with $200 million of debt, $50 million of preferred stock, and $210 million of book equity.
- What is its total corporate value?
- What is its value of equity?
- What is its value of operations?
- What is its MVA (MVA =Total corporate value - Total book value)?
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Core Concepts Financial Analysis
Authors: Gary Giroux
1st Edition
047146712X, 9780471467120
