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What is the total enterprise value of Kohler Co . using a discounted cash flow approach? What is the total enterprise value when using multiples?

What is the total enterprise value of Kohler Co. using a discounted cash flow approach? What
is the total enterprise value when using multiples? What is the value of a share held by a
minority shareholder in Kohler Co. that is implied by your valuation?
2) What assumptions can you use to arrive approximately at the share price of $55,400 that was
estimated by Kohler Co.? Show how these assumptions impact your valuation.
3) What assumptions can you use to arrive approximately at the share price of $273,000 that was
estimated by the dissenting shareholders? Show how these assumptions impact your
valuation.
4) What is the maximum price at which Herbert Kohler should be willing to settle with the
dissenting shareholders in order to stop the trial on April 11,2000? Assume that: i) if the trial
proceeds, it is expected to last less than a month and to result in one of two possible outcomes
in terms of the price per share established by in the court: then $273,000, being claimed by
the plaintiffs, or the $55,400 being defended by Herbert Kohler; ii) Kohler estimates the
probabilities of these two outcomes at 30% and 70%, respectively.

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