PQ2 - FINA 537 Equity Valuation Assignments for practice...

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FINA 537 Equity Valuation Assignments for practice (No need to submit) Question 1. You work in the corporate offices of International Paper (IP). You have been assigned to a special management team at IP to evaluate the potential acquisition of Jackson Container Company. Your team has put together a set of financial projections for Jackson Container for the years 2001 to 2005. These projections are reported in the attached table. You were also given the following assumptions: 1. The appropriate discount rate for Jackson Container is 16%. 2. The appropriate tax rate is 40%. 3. The acquisition will take place on December 31, 2000. You must calculate the value of Jackson Container. To complete this task, answer the following questions: 1) List Jackson Container's After Tax operating income for the years 2001 to 2005. 2) List Jackson Container’s Depreciation for the years 2001 to 2005. 3) List Jackson Container's Net Working Capital for the years 2001 to 2005. 4) List Jackson Container's
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PQ2 - FINA 537 Equity Valuation Assignments for practice...

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