Question: DO NOT NEED TO FORMAT RESPONSES The Sompany you valued has an equty value of $500 =ilion. You discover the comparif has a minonty paisake
DO NOT NEED TO FORMAT RESPONSES The Sompany you valued has an equty value of $500 =ilion. You discover the comparif has a minonty paisake stake with a bock valye of 512 million and a market (price) 10 book ratio of 3.8 for that industry. The compary also has a itujority active position with a book value of minonity interest of 510.5n illon with an industry market (price) to bock of 2.2. The initia francial stalemerts were tully consoldated. What should be the new vilusion of equty taking into account these holdings? (3 pointa) Oiginal Equaty. Value MV Minority passive MV Majority Active New Equity Value You expect the following for each of the next 3 years: con-cash net incorne of $55 mition, depreciation and arnontiration was f=7 Jon, total investments (eapex and changes in net working capital) of $17 milion and debt asuagnce of $7 mittion (assume no 4) debt repaid) What are the levered cash flows over the next 3 years? Assume a terminal value in yoar 3 of 5120 million, the firm hes 520 milion in debt and $30 milien in cash 4odey. the cost of equity is ere and the eost is dect is 5\%, the weight of equity is 75%. The marginal tax rate is 25%. What is the valve of equity loday? (ahow your work, do not worty about any fomatting or referencing, can hard code) (4 points)
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