Problem Set 11

Problem Set 11 - BusM 401 Problem Set #11 Company Valuation...

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BusM 401 Problem Set #11 Company Valuation Instructions: Complete all questions. This problem set is worth 10 points. Problems sets are graded on effort and completeness; you must show your work in order to get full credit. Short answers (“checkpoints”) are available for some questions on Blackboard so that you can check your answers. Full solutions are available on Blackboard after the problem set is due. (Some full answers are found in the back of Higgins; it’s best not to look at these until you have tried your best to answer the question.) Relax. 1. Refer to the following pro forma financial statements for ABC Corp. At the end of 2009 you are valuing ABC Corp. and are calculating a 2013 terminal value based on a liquidation scenario. What would the terminal value be in present value (2009) terms? Assume that the resale value of PP&E is 500 and that the appropriate discount rate is 10%. Income statement
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This note was uploaded on 03/17/2011 for the course BUS M 401 taught by Professor Toddmitton during the Fall '10 term at BYU.

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Problem Set 11 - BusM 401 Problem Set #11 Company Valuation...

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