Question: Please do this work in excel and show the work of the calculation please. First, we will calculate the value created ( NPV ) from
Please do this work in excel and show the work of the calculation please. First, we will calculate the value created NPV from the LBO. To obtain the value of the firm, you will follow the Congoleum Lecture Congoleum Guide.pdf darr. All the procedures and steps are given. The slides point you to the tables and cells for all the related cash flow calculations. You can break down works among your group members. There are parts in the total value. Each member can work on one part independently since you don't need numbers from one part for the other. The last two parts: PV loan and PV TV may take a bit longer than the first two. In terms of writing the report, you should answer the following: Why is this Congoleum a good target for LBO? What are the main benefits sources of gains from the LBO? What is value of the firm following the steps in the slides How much each of the participants gets from the LBO? The case slides also contain suggestions to help you think about the case. For example, you don't have to answer the questions on slide but they provide ways by which you can think about potential gains or incentives for the LBO. Overall, I would like you to apply the knowledge learned from the class in this reallife case. Show that you know how to value the firm and think about the payoffs for each investor. Exhibit Financial Data on Market Segment Competitors begintabularlllllllhline multirow & multirowYear Expected Growth & multirowbPE & multirowbbetatext a & multirowbLT Debt Cap. & multirowb ROE & multirow Expected Div. Yieldhline & & & & & & hline & & & & & & hline multicolumnlHome Furnishingshline Armstrong Cork & & & & & & hline GAF Corp & & & & & & hline multicolumnlShipbuildinghline Todd Shipyards & & & & & & hline multicolumnlAutomotive and industrial distributionhline Genuine Parts & & & & & & hline General Automotive Parts & & & & & & hline Barnes Group & & & & & & hline Congoleum & & & & & & hline endtabularmathrma The riskfree rate was assumed to be and the market premium Slide Cash Flow Analysis for The basecase NPV values the cash flows of a fictitious allequity firm. These free cash flows are not adjusted for nonequity financing cash flows such as debt principal payback, interest payments, and preferred dividends. Another word, financing costs are irrelevant for unlevered free cash flows. The free cash flows can be inferred from Exhibit :EBIT Taxes @Unlevered net income DepreciationAmortization Capitalexpenditures Investment inNWC
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