Question: I need help showing my work on excel. I missed partial credit bc my work did not reflect the problem IDX Technologies is a privately

IDX Technologies is a privately held developer of advanced security systems based


I need help showing my work on excel. I missed partial credit bc my work did not reflect the problem 

IDX Technologies is a privately held developer of advanced security systems based in Chicago. As part of your business development strategy, in late 2013 you initiate discussions with IDX's founder about the possibility of acquiring the business at the end of 2013. Estimate the value of IDX per share using a discounted FCF approach and the following data: Debt: $35 million Excess cash: $105 million Shares outstanding: 50 million Expected FCF in 2014: $42 million Expected FCF in 2015: $57 million Future FCF growth rate beyond 2015: 6% Weighted-average cost of capital: 9.4% Click the icon to see the Worked Solution (Formula Solution). The enterprise value in 2013 is $ 1,570 million. (Round to the nearest integer.) The equity value is $ 1,640 million. (Round to the nearest integer.) The value of IDX per share is $ 32.80. (Round to the nearest cent.) Review Only

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The value is computed as shown below FCF In 2014 1 W... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!