1. Using the sales forecasts for Tysabri presented in Exhibit A, and using the discounted cash flow...

Question:

1. Using the sales forecasts for Tysabri presented in Exhibit A, and using the model presented in Exhibit B, what do you think Elan is worth?
2. What other considerations do you think should be included in the valuation of Elan?
3. What would be your recommendation to shareholders- to approve management's proposals killing RP's offer-or say "no" to the proposals, probably prompting the acceptance of RP's offer?
Discounted Cash Flows
What is Discounted Cash Flows? Discounted Cash Flows is a valuation technique used by investors and financial experts for the purpose of interpreting the performance of an underlying assets or investment. It uses a discount rate that is most...