99 Fin20-q.xlsx - Week 13 FINAL EXAM Assignment Template HONOR PLEDGE I certify that I have neither given nor received aid on this exam During the e I

99 Fin20-q.xlsx - Week 13 FINAL EXAM Assignment Template...

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Week 13 FINAL EXAM Assignment Template HONOR PLEDGE: I certify that I have neither given nor received aid on this I have talked to no one inside or outside the course about the exam. Signed: READ: W13 Versal (or Word File): Merger & Acquisition - This is the only week with both Review previously assigned CFW chapters as necessary, especially: 5-Yr Forecast Template Ch 3, pps 33-35, 36-48 Time Value of Money Ch 4 Cost of Capital Template Ch 5, pps 70-76 Equity Valuation TemplatesCh 6, pps 99-102, 102-104 VIDEOS: links also appear on the W Debt Capacity repeated from W12 CASE: Private Equity: Merger Consolidation - To simplify the analysis, the two PT company financial statements are combined i - The FCF and MM valuation templates in this assignment are partly filled in; finish - The case tells you how Aaron will price his offer. - Your own valuation results offer guidance about whether the PT company sellers Assignment Questions appear on the tabs, Q1, Q2, Q3, Q4, Q5 Only Q4 deals with the W13 reading, so work wisely by reading the exam questio Merge and Acquire with Skill and Care You Can Learn from the Exploits of Marriott and Disney, Two Financially Aggressi The Mysterious Leveraged Buyout (LBO)
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exam. During the exam week through the Tuesday extended deadline, initials in box a Versal (or Word file) and an Excel Assignment Template 4 W13 Bb page into one company. h them before making your interpretation of the results. should accept his offer. ons before starting to study W13. ive Corporations
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in thousands OHIO PT MD PT COMBINED 2005 2005 2005 Sales 20,041 17,726 37,767 CGS 7,547 7,093 14,640 GM 12,494 10,633 23,127 Operating Expenses 3,137 5,883 9,020 Depreciation 378 308 686 EBITDA 9,357 4,750 14,107 Adjustments 1,359 1,500 2,859 Adjusted EBITDA 10,716 6,250 16,966 Assets Cash 1,342 653 1,995 A/R 5,916 4,239 10,155 Prepaid expenses 129 104 233 Total Current Assets 7,387 4,996 12,383 PPE - net 1,677 1,538 3,215 Other assets 456 108 564 Total Assets 9,520 6,642 16,162 Liabilities & Shareholder's Equity Current Liabilities Accrued expenses 527 919 1,446 Accounts payable 200 264 464 Current portion of LTD 226 0 226 Total Current Liabilities 953 1,183 2,136 Long-Term Liabilities LTD 597 1,047 1,644 Total Liabilities 1,550 2,230 3,780 Shareholder's Equity Total Equity 7,970 4,412 12,382 Total Liabilities & Shareholder's Equity 9,520 6,642 16,162
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Q1 Cost of Capital Page 4 WEIGHTED AVERAGE COST OF CAPITAL FIND INPUT DATA ON PAGE 7 OF CASE Formula Equation COST OF DEBT: Coupon Rate 8.00% Ex2 Marginal Tax Rate 35.0% Ex2 Cost of Debt 5.20% b5*(1-b6) k-d = I x (1- t) weight of debt p7 d ÷ d+e COST OF EQUITY: Risk-Free Rate 4.00% p7 R-m - R-f Beta Cost of Equity #VALUE! b11+(b13*b12) k-e = R-f + [ß x (R-m - R-f)]
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