Add back amortization of lt debt free cash flow

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Add back amortization of lt. DebtFree cash flowPresent value at all-equity cost of capitalPresent value of terminal value at WACCValue of CPPValue of PinkertonPost acquisition value of CPP assetsExisting CPP debtNew acquisition debtPost acquisition value of CPP EquityValue of 45% stakeCash received for 45% stakeEquity premiumFinancing the AcquisitionOptimistic ScenarioCash available for servicing new debtCCP total cash flowEx. 3Pinkerton FCFIncremental CCP FCFTotal FCFDebt service requirements, 75% debtPrincipal paymentsInterest payments @ 11.5% interestTax shield at 34%Total debt service burdenTotal FCF - total debt service burdenCumulative excess cash flowDebt service requirements, 100% debtPrincipal paymentsInterest payments @ 13.5%NPVFree cash flow at KATerminal value at KAand g = 3% or 0%
Tax shieldtotal debt serviceTotal FCF - total debt service burdenCumulative excess cash flowFinancing the Bid, Pessimistic Cash FlowsCash available for debt serviceCCP FCF Ex. 3Pinkerton FCFIncremental CCP FCFTotal FCFTotal FCF - total debt service burden 75% DebtCumulative excess cash flowTotal FCF - total debt service burden, 100% DebtCumulative excess cash flow
Pinkerton (A)$70.2no. of shares *share price = 3.9 million * $18$10.6Book value of debt (as in Ex. 4)34%0.81a = Equity beta/[1+(1-T)D/E} where T = tax rate, D = debt and E = equity7%It is assumed value14.2%Risk-free

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Term
Spring
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