Evaluate Time Warner's value range using the discounted cash flow (DCF) approach Discounted Cash Flow Model...

   

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Evaluate Time Warner's value range using the discounted cash flow (DCF) approach Discounted Cash Flow Model Inputs for Time Warner WACC Inputs Weight of Debt Weight of Equity Cost of Debt Risk-Free Rate Beta Market Risk Premium Tax Rate Free Cash Flow (2016) Inputs (in $ millions) EBIT Depreciation & Amortization Capital Expenditure Working Capital 2016 Working Capital 2015 Source: Created by the case authors. Notes: 21% 0.2143514 79% 100% - weight of debt 3.50% most recent bank loan interest rate 2.31% long-term governance bond yield 1.9 from Bloomberg 5% common practice for North America 35% marginal tax rate 6,583 669 432 3,782 4,511 Evaluate Time Warner's value range using the discounted cash flow (DCF) approach Discounted Cash Flow Model Inputs for Time Warner WACC Inputs Weight of Debt Weight of Equity Cost of Debt Risk-Free Rate Beta Market Risk Premium Tax Rate Free Cash Flow (2016) Inputs (in $ millions) EBIT Depreciation & Amortization Capital Expenditure Working Capital 2016 Working Capital 2015 Source: Created by the case authors. Notes: 21% 0.2143514 79% 100% - weight of debt 3.50% most recent bank loan interest rate 2.31% long-term governance bond yield 1.9 from Bloomberg 5% common practice for North America 35% marginal tax rate 6,583 669 432 3,782 4,511