Reference no: EM133074376
You can find this case study in your course pack, please complete the assignment below:
1. Assuming Tottenham Hotspurs continue in their current stadium following their current player strategy:
Perform a DCF analysis using the cash flow projections given in the case. Based on this DCF analysis, what is the value of the Hotspurs?
Perform a multiple analysis. Based on the multiples analysis, is the value of Tottenham any different?
At its current stock price of £13.80, is Tottenham fairly valued?
2. Using a DCF approach, evaluate each of the following decisions:
Build the new stadium
Sign a new striker
Build the new stadium and sign a new striker
3. Based on the results from 2, select a best choice and provide a logical argument to support it.
Hints:
There are multiple ways to find the answer; individual's answers may vary. Be sure to provide a logical reasoning for your assumptions.
Exhibit 3 provides values for Discounted Cash Flows
DCF can be done a couple ways, based on EBITDA or calculating Free Cash Flows
If you use the Free Cash Flow Method, you will also need to include capital acquisitions by year and change the net working capital by year
Regardless of method, you need to determine a terminal value of the business (the present value of a perpetuity)
Use 10.25% as the discount rate
Remember to determine the value you will need to subtract the value for debt
For adding a new stadium and new striker, you need to adjust your original DCF model and find the new cash flows. Remember to adjust for related revenues and expenses and recalculate the value of the enterprise.
Assume the Weighted Average Cost of Capital (WACC) is 10.25%
|
Determine the Jones family income
: In addition, during August, the 5-year-old went to overnight camp for 3 weeks at a cost of $400 per week. Determine the Jones' family income
|
|
What are some of the family nursing theories
: Evaluated on the basis of the quality, quantity and timeliness of the comments that you post into the forums. Quality, quantity and timeliness
|
|
What the net impact on the plants accumulated depreciation
: Both companies use the cost model. What the net impact on the plant's accumulated depreciation account for 31 December 20X4 consolidation
|
|
Enhance portfolio with practical experience
: Enhance a portfolio with practical experience and projects. Identify your strengths, weaknesses, and areas of interest, based on your practical work experience.
|
|
Dcf analysis using the cash flow projections
: You can find this case study in your course pack, please complete the assignment below:
|
|
Compute the machine book value at the end of its second year
: Apex Fitness Club uses straight-line depreciation for a machine costing $28,500, Compute the machine book value at the end of its second year
|
|
Literature review- discourse of leadership
: Include your own experience as well as two citations that align with or contradict your comments as sourced from peer-reviewed academic journals
|
|
How many years did Kerry own the antique
: Kerry estimated the average annual compound rate of return on the antique was 15%. Approximately how many years did Kerry own the antique
|
|
Fees of foreign exchange and the transparency of fees
: Make a recommendation to corporate clients as to what their likely current foreign exchange fees are for foreign exchange transactions where on a weekly basis $
|