Estimate venture equity valuation cash flow

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Reference no: EM131862496

1. Estimate a venture’s equity valuation cash flow based on the following information: revenue = $24,475, net income = $6,372; depreciation = $4,600; change in net operating working capital = $2,415 (a source of cash); capital expenditures = $6,900; and new debt issues = $1,000.

a. $6,487

b. $7,487

c. $4,487

d. $3,787

e. $5,787

2. Estimate a venture’s terminal value based on the following information: current year’s net sales = $500,000; next year’s expected cash flow = $16,000; constant future growth rate = 4%; and venture investors’ required rate of return = 20%.

a. $156,846

b. $285,714

c. $200,000

d. $150,000

e. $100,000

Reference no: EM131862496

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