Use the data from Excel for Spaceman following this link. Specific values needed: https://docs.google.com/spreadsheets/d/1qKHsiPmbBQAMbw9Of_aJakcMQuYDqA0J/edit?usp=sharing&ouid=111364388527205663124&rtpof=true&sd=true a) In-depth valuation
Question:
Use the data from Excel for Spaceman following this link. Specific values needed: https://docs.google.com/spreadsheets/d/1qKHsiPmbBQAMbw9Of_aJakcMQuYDqA0J/edit?usp=sharing&ouid=111364388527205663124&rtpof=true&sd=true
a) In-depth valuation estimate for Spaceman using the Asset Method (liquidation of assets).
b) In-depth valuation estimate for Spaceman using the Income Method (Value = Expected annual benefit stream/Required rate of return) by estimating your free cash flow and capitalization rate (Discount rate - Growth) using the following assumptions in the calculations:
i. The calculation will be for 100% of the business for a valuation date of 05/31/2018 ii. Assume the replacement salary and benefits for a manager to do the work of the owner would be $100,000 iii. Assume the tax rate is 21% iv. Assume there is average risk for the Company-Specific Risks
Also:
a. What do you think an acceptable range of value would for a purchase?
Expert Answer:
ANSWER Lets dive into the valuation of Spaceman using both the Asset Method and the Income Method Ill provide an overview of each method and then proc... View the full answer
