Question: Mini Case # 1 Pampa RV , INC. Here you have a list of suggested steps: 1 - Put together the Income Statement for the

Mini Case #1 Pampa RV, INC.
Here you have a list of suggested steps:
1- Put together the Income Statement for the next 5 years.
2- Calculate the Operating Cash Flow for the next 5 years.
3- Calculate the Cash Flow from Assets or Free Cash Flow for the next 5 years.
4- Calculate the cost of equity for CCC.
5- Calculate CCCs WACC, in this case is going to be equal to the cost of equity since CCC does not have any debt.
6- Calculate CCCs Terminal Value in Year 5.
7- Find the tentative value of CC discounting all the Free Cash Flow for the next 5 years and the Terminal Value in year 5.
8- Calculate CCCs price per share.
9- Calculate Pampas post-merger price per share.*
10- Calculate Pampas post-merger beta.**

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