Discuss the key variables you would use to test the sensitivity of the DCF analysis in Exhibit
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Question:
Discuss the key variables you would use to test the sensitivity of the DCF analysis in Exhibit 11. You can use high to low range within +10% to -10% of any variable's value. Pick two variables from the sensitivity analysis and perform a scenario analysis on them (I.e., vary them simultaneously and see the impact on value).
For the base year, use Excess Cash = $1,512mn, Debt = $1,432mn, EBIT =$1,756mn. Use the Post-IPO number of shares for valuing the stock =2,138,085,037.
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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