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%
