ASSUMPTIONS ($ Millions) North Furniture Co. (North) is a leading provider of high-end furniture. You are...

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ASSUMPTIONS ($ Millions) North Furniture Co. ("North") is a leading provider of high-end furniture. You are part of the Finance team working on building a discounted cash flow analysis. North is publicly-traded on the NASDAQ stock exchange. Financial and other information are listed below and in Exhibits A & B of the Appendix. Assume that the North debt market and book values are the same. North Market Information Stock Price Shares Outs. (MM) North Betas Levered Beta Debt Beta $70.00 42 2 0.35 What is North's equity market value? North Debt Cost of Debt Maturity (Yrs.) Credit Rating Target Debt/Cap. Delta Subsidiary North Equity Stake Stock Price Shares Outs. (MM) Net Debt 4.70% 10 Ba1/BB+ 60% 75% $14.00 125 $78.2 ASSUMPTIONS ($ Millions) North Furniture Co. ("North") is a leading provider of high-end furniture. You are part of the Finance team working on building a discounted cash flow analysis. North is publicly-traded on the NASDAQ stock exchange. Financial and other information are listed below and in Exhibits A & B of the Appendix. Assume that the North debt market and book values are the same. North Market Information Stock Price Shares Outs. (MM) North Betas Levered Beta Debt Beta $70.00 42 2 0.35 What is North's equity market value? North Debt Cost of Debt Maturity (Yrs.) Credit Rating Target Debt/Cap. Delta Subsidiary North Equity Stake Stock Price Shares Outs. (MM) Net Debt 4.70% 10 Ba1/BB+ 60% 75% $14.00 125 $78.2

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