5. You have married into a family business and you are in charge of the finances....

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5. You have married into a family business and you are in charge of the finances. Your father-in-law is considering an IPO and has asked you to come up with estimates for the equity value. Here are the figures you have been able to come up with so far: a. 2022 free cash flow: $9.0MM b. 2023 free cash flow: $9.6MM c. 2024 free cash flow: $10.5MM d. Annual FCF growth after 2024: 3.2% e. 2021 EBITDA: $9.5MM f. 2021 earnings: $6.0MM g. Company WACC (discount rate): 12% h. Total debt: $6MM i. Overall PE ratio for similar companies: 20x j. EV/EBITDA multiple that similar companies have sold for: 10x k. Market value of company assets: $75MM Please develop a free cash flow valuation PLUS two other valuations to estimate the total value of the Equity for the business. 6. You recently bought a $2800 TV, paying $300 in cash and putting the rest on your new credit card that charges 21% APR. Your plan is to pay off the card in 5 years. How much is your monthly payment? After two years how much principal will you still owe on the loan? 5. You have married into a family business and you are in charge of the finances. Your father-in-law is considering an IPO and has asked you to come up with estimates for the equity value. Here are the figures you have been able to come up with so far: a. 2022 free cash flow: $9.0MM b. 2023 free cash flow: $9.6MM c. 2024 free cash flow: $10.5MM d. Annual FCF growth after 2024: 3.2% e. 2021 EBITDA: $9.5MM f. 2021 earnings: $6.0MM g. Company WACC (discount rate): 12% h. Total debt: $6MM i. Overall PE ratio for similar companies: 20x j. EV/EBITDA multiple that similar companies have sold for: 10x k. Market value of company assets: $75MM Please develop a free cash flow valuation PLUS two other valuations to estimate the total value of the Equity for the business. 6. You recently bought a $2800 TV, paying $300 in cash and putting the rest on your new credit card that charges 21% APR. Your plan is to pay off the card in 5 years. How much is your monthly payment? After two years how much principal will you still owe on the loan?