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You will have to calculate different financial criteria for all 3 years. Book Value and BV Per Share Market Cap EBITDA Earnings Multiplier Per Share
You will have to calculate different financial criteria for all years.
Book Value and BV Per Share
Market Cap
EBITDA
Earnings Multiplier Per ShareTotal
Enterprise ValueEV Ratio
PV of Growing Perpetuity
Growth Rate
Discount Cash Flow
Venture Coast LLC is looking to acquire a new company. Below are the financials for a potential
candidate. Find out the following to determine if Venture Coast should invest. Revenue forecast is as
follows: Y: $; Y: $; Y: $
Determine the company valuation for each of the next three years
a Assume the net earnings, all assets, all liabilities and equity will grow at the same
average growth as sales.
b The price per share is $ and it is forecasted to stay the same
c There are outstanding shares
d Venture Coast has a minimum requirement of return on any investment they do
e Venture Coast has a maximum budget of $ million
Income Statement
For the year ending December
Sales $
Cost of goods sold
Gross profit
Operating expenses $
Depreciation
EBIT
Interest expense
EBT
Tax Expense
EAT $
Dividends
Retained earnings $
Balance Sheet
December
Cash $ Shortterm liabilities
Marketable securities Midterm liabilities
Accounts receivable Longterm liabilities
Inventories Common Equity
Plant, net
TOTAL ASSETS $ Total L E $
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