Reference no: EM131124871
DuPont Corporation: Sale of Performance Coatings
Study Questions:
1. What are some of the important features of APV, and why is it a useful approach for valuing an LBO?
2. Working from case Exhibit 9, estimate the increase in value a PE sponsor can obtain assuming:
a) 5% revenue growth per annum (vs. 4%) in each of the next five years along with improving operating margins to 12% (vs. 10%).
b) Assume part a. and that the division can be sold for 7.5x EBITDA in five years.
c) Assume part a. and b. and that debt financing of 5.0x forward EBITDA can be obtained. Assume that all cash is available to pay down the LBO debt and that after five years, the firm will revert to an all equity capital structure.
3. If a PE sponsor has a target levered return of 20% (before their fees), what is the maximum enterprise value it can offer for DPC under parts b and c above?
4. What minimum bid should Ellen Kullman set if she chooses to sell DPC?
Attachment:- Assignment.rar
|
Three-workstation seral production line with high reject
: 7% after each workstation. Parts rejected after the first workstation are sent to scrap. Parts rejected after the second workstation are returned to the first workstation where they are reworked, which requires a fresh "draw" from the processing-t..
|
|
Create a dataset on psychology research study
: Create a dataset on psychology research study and perform Wilcoxon signed rank test and Mann Whitney U test. Create a dataset on psychology research study and perform Chi square test
|
|
Evaluate the nutritional requirements across the lifespan
: Explain the digestion, absorption, and metabolism of the macronutrients (carbohydrate, protein, and fat). Make sure to appraise the parts of the body involved in these processes.
|
|
Prepare a payroll register for throwback industries
: Employees Mantle and Williams are office staff, and all of the other employees are sales personnel. All sales personnel are paid 1½ times the regular rate for all hours in excess of 40 hours per week. The social security tax rate is 6.0%, and Med..
|
|
What are some of the important features of apv
: What are some of the important features of APV, and why is it a useful approach for valuing an LBO? Working from case Exhibit 9, estimate the increase in value a PE sponsor can obtain assuming
|
|
Established a standard cost system to help control
: Dawson Toys, LTD., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy:
|
|
Define carbon skeletons of aminoacids
: Classify aminoacids givingexamples based on fate of their carbon skeletons.
|
|
What happens when the lungs recoil
: What happens when the lungs recoil? What is the main cause of transpiration in plants? Which one of the following statements accurately describes a characteristic of red blood cells?
|
|
John makes child support payments
: John and Mary Jane Diaz are married, filing jointly. Their address is 204 Shoe Lane, Blacksburg, VA 24061. John is age 35, and Mary Jane is age 30. They are expecting their first child in early 2016. John's salary in 2015 was $105,000, from which ..
|