Logout Varnisha Neithikunta My Institution Courses 16FL-MG761-144 – Mergers and Acquisitions…

Logout Varnisha Neithikunta My Institution Courses 16FL-MG761-144 – Mergers and Acquisitions…

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16FL-MG761-144 – Mergers and Acquisitions

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DCF assignment instructions

  • This assignment has two parts. Review the Case Study “Applying the Discounted Cash Flow Method of Business Valuation” on page 565 and 566 of the text. You can also review PowerPoint Lecture Slides 41 – 44.

    Part 1: Make two simple assumption changes:

    1. Base year revenue is $2.0 billion in 2006 (as compared to $2.5 billion in the Book and Lecture).
    2. The maturity growth rate is 7%, rather than 6%.

    Please recreate the Free Cash Flow, Terminal Value and Total Enterprise Value tables and fill in numbers based on these assumption changes.

    You should use Excel for the calculations. Then copy and paste that to Word. Please Paste Special and select Microsoft Excel Worksheet Object.

    Part 2: Discuss some of the benefits and disadvantages of using the Discounted Cash Flow valuation method.

    Please keep the text for Part 2 to less than 200 words.

Logout Varnisha Neithikunta My Institution Courses 16FL-MG761-144 – Mergers and Acquisitions…

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