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Which Valuation Method to Use: Assume you were going to value the companies described below. State which valuation method you would use to value the

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Which Valuation Method to Use: Assume you were going to value the companies described below. State which valuation method you would use to value the company and discuss why you would use that method. A privately held company has had a stable capital structure strategy using 20% debt financing and 20 preferred stock financing and is expected to use the same capital structure in the future. Value the company as of today. A publicly traded company, which has had no debt for many years, is planning to undergo a debt. The plan calls for the company to issue a large amount of debt3/4about 90% of the value firm-and distribute the cash to its equity holders. Over the next ten years, the company plans to debt so that the company will have 20% debt financing at the end of ten years. The company's (after year ten) capital structure strategy is to maintain 20% debt financing. Value the company as date of anticipated debt recapitalization. Which Valuation Method to Use: Assume you were going to value the companies described below. State which valuation method you would use to value the company and discuss why you would use that method. A privately held company has had a stable capital structure strategy using 20% debt financing and 20 preferred stock financing and is expected to use the same capital structure in the future. Value the company as of today. A publicly traded company, which has had no debt for many years, is planning to undergo a debt. The plan calls for the company to issue a large amount of debt3/4about 90% of the value firm-and distribute the cash to its equity holders. Over the next ten years, the company plans to debt so that the company will have 20% debt financing at the end of ten years. The company's (after year ten) capital structure strategy is to maintain 20% debt financing. Value the company as date of anticipated debt recapitalization

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