What is the stand-alone valuation of framedia

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Reference no: EM132809621

Problem 1: What is the stand-alone valuation of Framedia at the end of 2005?

Use a 30% discount rate, a 35% tax rate and extend the cash flows until the end of 2008. Assume an exit Free Cash Flow multiple of 13 (i.e. calculate terminal value not based on the formula we saw in class but as an exit multiple, i.e. 13 X 2008 Free Cash Flow.) Also, when you read the financial statement keep in mind that Profits from Operation = EBIT. Finally, calculate NWC as Cash + Inventories + Accounts Receivable - Accounts Payable.

Reference no: EM132809621

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