What is discounted cash flow analysis

Assignment Help International Economics
Reference no: EM131986459

Question 1: Using the assumptions for ValueCo below, determine the weighted average cost of capital for ValueCo.

Assumptions
Debt to total capitalization 50%
Cost of debt 6.00%
Tax rate 40%
Risk-free rate 0.50%
Market risk premium 5%
Size premium 2%
Unlevered beta 1.6

Question 2: Using the assumptions for ValueCo below, determine the implied share price for ValueCo.

Assumptions
Terminal Year (year 5) EBITDA 800
Exit multiple 8.5
WACC(weighted average cost of capital) 10%
Cumulative present value of free cash flow 1500
Total debt 1000
Cash and cash equivalents 200
Fully diluted shares outstanding 100

Question 3: What is discounted cash flow analysis? Analyse the benefits of using discounted cash flow analysis.

Question 4: What does accretion/dilution analysis measure? Outline the key drivers in accretion/dilution analysis.

Question 5: Briefly discuss the key drivers of IRR (Internal Rate of Return) in leveraged buyout analysis.

Verified Expert

The assignment was to calculate financial ratios and related data about an organisation named Value Co. Also, IRR and other theoretical concepts were considered for evaluating the same.

Reference no: EM131986459

Questions Cloud

Describe the public health in atlanta : Describe the public health IN ATLANTA interest you have chosen to use as your course project in writing a grant application
Marketing in healthcare : What is different and what is not about marketing in healthcare - compared with other industries?
How many total orderings can defined on a set with n element : How many total orderings can be defined on a set with n elements? Explain your answer. Data Structures and Algorithm Analysis in C++ by Clifford Shaffer.
Explain the marketing variable mix : Explain the marketing variable mix (4Ps) for the Oklahoma Surgery Center
What is discounted cash flow analysis : What is discounted cash flow analysis? Analyse the benefits of using discounted cash flow analysis - What does accretion/dilution analysis measure?
Create a world in which marcello demonstrates his new act : Create a world in which Marcello (an instance of the Magician class from the People Collection) demonstrates his new act. (Starting out with alice. Programming)
Discuss the short- and long-term implications : Identify two current environment trends that impact a healthcare organization's strategy and discuss the short- and long-term implications of these trends.
What security breaches have occurred in the past : Many security experts are concerned about Microsoft's ActiveX controls. What security breaches have occurred in the past regarding ActiveX controls?
Anything you would change about policy : Discuss a global health policy that affects public health educator. Is there anything you would change about this policy? Explain why or why

Reviews

Write a Review

International Economics Questions & Answers

  Was germany and europes concerns valid

Was Germany and Europe's concerns valid? Should the rest of the world fear the possibility of the dollar being valued less than their home currencies?

  Continental europe maybe germany.what industry should they

Mobile Square (text-message campaigning) is a customer-relationship-management platform. They service via text messages specific demographics, making donations by clicking on Web links.

  The absolute and relative sizes of the public debt

Explain How do economists distinguish between the absolute and relative sizes of the public debt? Why is the distinction important?

  Discuss how and why the u.s deficit

Discuss how and why the U.S deficit, surplus and debt have an effect on the following: U.S. Tax payers Future Social Security

  International trade and growth

Create a second short assignment where students can practice the concepts taught in Presentation. Each of the objectives must be represented in the assignment. Include an answer key.

  Trade restrictions limiting the sale of cheap foreign goods

Trade restrictions limiting the sale of cheap foreign goods in the United States are necessary to protect the prosperity of Americans

  How would you expect that the groups to be affected

Similarly, the autarky price of poultry in Mexico was above the world price and in the United States was below the world price. Draw diagrams with domestic supply and demand curves for each country and each of the two goods. as a result of NAFTA, ..

  How china has experienced rapid economic growth

The large trade deficit that the U.S. has with China persists in part because: the U.S. economy has grown slowly in recent years. China has fixed its exchange rate and not allowed the yuan to appreciate relative to the U.S. dollar.

  Using the internet library andor other resources research

using the internet library andor other resources research and briefly explain 2-3 methods currently being used to

  Why resources are no longer the most important indicators

why resources are no longer the most important indicators of economic growth disparity among countries? which other

  Multiple choice - comparative advantage

An rise in the Federal minimum wage to $7.25 per hour from $5.15 a hour, suppose that the $7.25 is an effective price floor and that all other things remain steady,

  Determines output and discuss price and output under

Describe how a profit-maximizing monopolist sets prices and determines output and discuss price and output under oligopoly, with and without collusion.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd