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You are an Investment Banker with the firm of Emerson, Lake and Palmer, LLC and you're working on a leveraged acquisition being considered by your
You are an Investment Banker with the firm of Emerson, Lake and Palmer, LLC and you're working on a leveraged acquisition being considered by your client, Allison Chains, Inc. You've received financial information and projections from the target company and you begin the preparation of you DCF valuation model. You know that your Managing Director at Emerson, Lake and Palmer, LLC will want to present two general forms of analysis to the Allison Chains, Inc. board of directors.:
- Provide a valuation of the entire business enterprise based on a projection of free cash flow
- provide an IRR analysis of thespecific investment returns in the form of Net cash flow that Allison Chains, Inc. will earn on the equity portion of the target company.
FCF= 7,560
NCF= 5,100
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