Spreadsheet problem
Not what you're looking for?
See attached files.
Using the spreadsheet and the data therein, calculate the values for the 30 cells in the three boxes at the bottom of the sheet.
First calculate the FCFs, starting with Operating Income After Tax (sometimes called NOPAT, the acronym for Net Operating Profit After Tax) and make the necessary calculations to arrive at the Free Cash Flows (FCFs) for the years 2001-2006. Assume that Free Cash Flows beyond 2006 grow at a rate of 6%, using the FCF in 2006 as the base.
Then calculate a terminal value two ways - using a constant growth rate DCF model and a TEV/EBITDA multiple. For the latter, use a multiple of 7.3X, which should tie back to the Comparable Company data. Next, use the data provided in the left-hand column at the bottom of the page to calculate the estimated WACC for ABC. Finally, calculate the PV of the two sets of FCFs ( FCFs for 2001-2006 and the two terminal values). How do these values compare to one another and to the valuations obtained from the Comparable Company Valuation Analysis?
Purchase this Solution
Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Introduction to Finance
This quiz test introductory finance topics.