Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You want to valuate a firm on June of this year. Using the following forcasted information for the upcoming 5 years, retrive the following: Enterprise

You want to valuate a firm on June of this year. Using the following forcasted information for the upcoming 5 years, retrive the following: Enterprise & Equity Value using the Discount Cash Flow Model Transaction Date Fiscal Year End 6/30/2022 12/31/2022 Discounted Cash Flow Date Entry 6/30/2022 2022 2023 2024 2025 12/31/2022 12/31/2023 12/31/2024 12/31/2025 2026 12/31/2026 Exit 12/31/2026 0 1 2 3 4 2022 2023 2024 2025 2026 Revenues Cost of Goods Sold SG&A Research and Development Depreciation Interest Capital Expenditure Change in NWC 166,507 176,498 187,088 198,313 210,212 99,904 105,899 112,253 118,988 126,127 24,668 26,148 27,717 29,380 31,142 2,269 2,406 2,550 2,703 2,865 3,157 3,347 3,548 3,761 3,986 3,240 4,240 4,240 4,540 4,550 12,334 13,074 13,858 14,690 15,571 (987) 1,046 1,109 1,175 1,246 Inputs Return on Equity 14.00% WACC 12.00% Growth 3.25% Cash 7,000 EV/EBIT 5.4x Debt 35,000 Common shares 5,000 Dividends 70.00% 25.00%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management For Non Profit Organizations

Authors: Hani Bashier

1st Edition

979-8863129877

More Books

Students also viewed these Accounting questions

Question

=+What is the nature of the unions in the particular country?

Answered: 1 week ago