Manufactures and markets variety of toy products worldwide

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Reference no: EM131011757

It is January 2010 and as the Chief Executive Officer of TM Toys Inc. you are evaluating a strategic acquisition of Toy Co. Inc. Toy Co. Inc. designs, manufactures and markets a variety of toy products worldwide through sales to retailers and wholesalers and directly to consumers.

Toy Co's closing market value of equity per share on 12/31/09 was $19.49. Your task is to estimate the intrinsic value of Toy Co. Inc.'s equity (on a per share basis) at 12/31/09 using the Enterprise DCF Model; this will assist you with the determining what per share offer to make to Toy Co. Inc.’s shareholders. In performing your analysis keep in mind the following:

*The company has an interest-bearing debt balance at 12/31/09 of $618.10 (millions) and a non-operating assets (cash) balance of $1,156.8 (millions), Treat all of the results/forecasts for the fiscal year ended 2010-2014 as projections.

* Enterprise Value/EBITDA Exit Multiple range of 10.5-11.5x

Reference no: EM131011757

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