Question: Using the DCF methodology required in question 1, please take one of your suggestions and reevaluate the buy-out. To complete this question, you will have
Using the DCF methodology required in question 1, please take one of your suggestions and reevaluate the buy-out. To complete this question, you will have to present a second Excel template that includes your new assumed values and supports your recommendations. Further, please comply with the following:
Assumptions must be reasonable – i.e., do not select arbitrary values. Some discussion should be provided that explain how you arrived at your new assumed values.
Variable changes should be restricted to the discount rate, the FCFs, and/or the terminal value. Please present only one set of assumptions (e.g., do not submit a table that includes multiple values for the same variables.)
Variable changes should be restricted to the discount rate, the FCFs, and/or the terminal value. Please present only one set of assumptions (e.g., do not submit a table that includes multiple values for the same variables.)
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Only one excel template is required. I have used two for illustration purpose
1) Change in discount rate from 13% to 18%
2) Decrease in FCF and Terminal cash flow by 10%
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Document Format (1 attachment)
68-B-C-F-S-V (239).xlsx
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