Calculate the following Problem #4 NOTE: Use the financials given in the Exam file tab labeled Problem
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Problem #4 NOTE: Use the financials given in the Exam file tab labeled "Problem # 4" Part 1 (Version 2) Part 1 What is the value per share of the company as of 12/31/2020? Assume: * Use your answer in problem #2 for the WACC * Terminal growth rate = 3%, and Sales *Cash is a non-operating asset * # of shares outstanding is 25,000 Part 2 Assume the acquiring firm can increase sales as follows: 2021 $ 28,000 $ 2022 40,000 $ 2023 2024 45,000 $ 55,000 $ 1) Calculate the Value of Synergies as of 12/31/2020. Assume: * CFs will grow @ 3% per year after 2025 * Assume net working capital and capital expenditures remained unchanged 2025 75,000 2) Assuming an offer was made for $5 more than the current value (calculated in part one), what would be the deal NPV as of 12/31/2020? Note: for Problem #4, TAX = 30% Problem #4 NOTE: Use the financials given in the Exam file tab labeled "Problem # 4" Part 1 (Version 2) Part 1 What is the value per share of the company as of 12/31/2020? Assume: * Use your answer in problem #2 for the WACC * Terminal growth rate = 3%, and Sales *Cash is a non-operating asset * # of shares outstanding is 25,000 Part 2 Assume the acquiring firm can increase sales as follows: 2021 $ 28,000 $ 2022 40,000 $ 2023 2024 45,000 $ 55,000 $ 1) Calculate the Value of Synergies as of 12/31/2020. Assume: * CFs will grow @ 3% per year after 2025 * Assume net working capital and capital expenditures remained unchanged 2025 75,000 2) Assuming an offer was made for $5 more than the current value (calculated in part one), what would be the deal NPV as of 12/31/2020? Note: for Problem #4, TAX = 30%
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Part 1 1 Calculate the Value of Equity as of 12312020 V D1r FCFt... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
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