Question: Your manager has asked you to value Ted Enterprises, a potential acquisition. To make your life easier, your manager gave you some of the numbers

Your manager has asked you to value Ted Enterprises, a potential acquisition. To make your life easier, your manager gave you some of the numbers in the template shown above. Your manager wants you to value Ted and show your results in a matrix that has: - discount rates of 8%, 9%, and 10% along the vertical - long term growth rates of 3%, 3.5%, and 4% along the horizontal Note that your manager wants the dollar price per share, so you must calculate the dollar value of the equity and then divide by the number of shares outstanding.

Your manager has asked you to value Ted Enterprises, a potential acquisition.
To make your life easier, your manager gave you some of the
I sent all three questions along with the excel spreadsheet

B C D Ted Enterprises 7+ Cash Flow Yrs. 1-6 3 Sales growth 4 Costs ( of sales): 5 Cost of Goods Sold 6 Advert. Prom., & Selling 10 7 General Administrative 8 Rates: 9 Tastate 10 Discount rate Results 12 PV O NCF (incl. TV) 13 Cash 14 - Debt 15 Total Equity (MS) 16 - of shares outstanding (M) 17 - Price/share (5) 109 Sales Cost of Goods Sold Advert. Prom., & Selling General Administrative Net Income before Tax Taxes Net Income after Tax Cash flow adjustments: Working Capital Capital Expenditures Net Cash Flows NCF (incl. terminal value) (3.1) (1.2) (3.7) (15) (4.8) (1.8) (2) 2.4 (3.0) 3.1 2.1) (0.8) Pricesbare (S) for 3.59 0 6 10.0 o o e eu here to search COPY- X Autolim- JTM Airlines 13.0" serate bon Operations Capital Expenditures Cashow NCF Real Optics OP PVCp Maturity PVNCE 1-2) Cash Flow Val NCF of Cap. Ex Crs 1-2) Voly SOVO VO Difference B C D Ted Enterprises 7+ Cash Flow Yrs. 1-6 3 Sales growth 4 Costs ( of sales): 5 Cost of Goods Sold 6 Advert. Prom., & Selling 10 7 General Administrative 8 Rates: 9 Tastate 10 Discount rate Results 12 PV O NCF (incl. TV) 13 Cash 14 - Debt 15 Total Equity (MS) 16 - of shares outstanding (M) 17 - Price/share (5) 109 Sales Cost of Goods Sold Advert. Prom., & Selling General Administrative Net Income before Tax Taxes Net Income after Tax Cash flow adjustments: Working Capital Capital Expenditures Net Cash Flows NCF (incl. terminal value) (3.1) (1.2) (3.7) (15) (4.8) (1.8) (2) 2.4 (3.0) 3.1 2.1) (0.8) Pricesbare (S) for 3.59 0 6 10.0 o o e eu here to search COPY- X Autolim- JTM Airlines 13.0" serate bon Operations Capital Expenditures Cashow NCF Real Optics OP PVCp Maturity PVNCE 1-2) Cash Flow Val NCF of Cap. Ex Crs 1-2) Voly SOVO VO Difference

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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!