Question: please show work and not in excel Normal I No Spac... Heading 1 Heading 2 Title Select Paragraph E Styles Editing 1 2. 4 ..!
Normal I No Spac... Heading 1 Heading 2 Title Select Paragraph E Styles Editing 1 2. 4 ..! - You have married into a family business and you are in charge of the finances. Your father-in-law is considering an IPO and has asked you to come up with estimates for the equity value. Here are the figures you have been able to come up with so far: 2020 free cash flow: $800,000 2020 EBIT: $1.0MM 2021 free cash flow: $840,000 2020 Earnings: $550,000 2022 free cash flow: $882,000 Total debt: $1MM Annual FCF growth after 2022: 5% 2020 Depreciation: $200,000 Company WACC (discount rate): 12% Liquidation value of assets: $12.3MM 2020 accounts payable: $300,000 Overall PE ratio for similar companies: 20x EV / EBITDA multiple that similar companies have sold for: 10x Please develop an equity valuation for the business using the free cash flow valuation method. Please also provide three additional equity valuations, using other methods
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