What is the forecast of stratus profit

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Question 1: What is the forecast of Stratus' profit of years 4 and 5? You can use the percentage of sales method explained in chapter 14 (see the connections website; also, on the books website you will find a excel model which those of you who like number crunching might use.

Question 2: What is the value of Stratus based on years'5 profit or EBITDA using the multiples method (with eg the industry P/E average multiple) - and for those of you who would like to get an excellent grade: what is the value based on DCF?

Question 3: How does Foster get his $ 2 million for year 1? How $ 2.2 million for year 2 and how $ 2 million in year 3? How do private equity firms work? (risk versus return?)

Question 4: Was or is Stratus Computer a success story?

Reference no: EM132460562

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