Question
Using the following information, estimate the total value of this privately held company. Estimates of Year 1 (next year) financial performance (Unit: $ million) Revenue
Using the following information, estimate the total value of this privately held company.
Estimates of Year 1 (next year) financial performance (Unit: $ million) | |
Revenue | 900 |
Costs of goods sold | 100 |
Selling, general and administrative expenses including R&D | 200 |
Depreciation | 50 |
Property and equipment | 1100 |
Working capital | 150 |
Current (Year 0) financial data (Unit: $ million) | |
Property and equipment | 950 |
Working capital | 110 |
Other information for valuation | |
Operating tax rate | 21% |
The estimated growth rate of cash flows (Assume that this growth rate is constant) | 6% |
This company has no debt. |
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Assume that 14% is the required return on this companys assets. |
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