The valuation and financing of lady m confessions

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Reference no: EM132998745

Case Study: "The Valuation and Financing of Lady M Confessions".

Read the following case study and Answer the following questions

  1. How many cakes would lady M need to sell in a year to break even? Does this number seem feasible?
  2. Assuming sales in year one are break-even, how quickly would sales need to grow after the 1st year to pay the start-up costs within five years? Is this growth rate feasible?
  3. What will be your recommendation? Should Romaniszyn open a new location in the world trade centre?
  4. What is Lady M's Enterprise value? Does it matter if one uses an EBITDAS multiple or a perpetuity growth formula for a terminal value? How much of an equity stake should they be giving up to the Chinese investors?
  5. What do you think of Romaniszyn's and Tom's baseline assumptions? Are they realistic?

Requirements: Use excel spreadsheet for calculations.

Reference no: EM132998745

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