Question
Using the assumptions for ValueCo below, determine the implied share price for Value Co. (20 marks) Assumptions Terminal Year (year 5) EBITDA 800 Exit multiple
Using the assumptions for ValueCo below, determine the implied share price for Value Co. (20 marks)
Assumptions
Terminal Year (year 5) EBITDA 800
Exit multiple 8.5
WACC(weighted average cost of capital) 10%
Cumulative present value of free cash flow 1500
Total debt 1000
Cash and cash equivalents 200
Fully diluted shares outstanding 100
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
