Calculating Enterprise Value All figures in USD thousands unless stated Levered free Cashflow Debt Unlevered Free Cash Flow Cash WACC Cost of Equity 8.75% 12.00% Year 0 24,043 33,222 38,212 9,700 Year 1 25,245 34,304 39,549 10,782 Year 2 26,507 38,058 40,933 14,536 Given only the above information, what is the Enterprise Value at the end of Year O? Assume end-of-year discounting. Year 3 27,832 43,234 42,366 19,712 Year 4 29.224 50,517 43,849 26,995 Year 5 30,685 55,480 45,383 31,958 Year 6 32,219 60,198 46,972 36,676
Calculating Enterprise Value All figures in USD thousands unless stated Levered free Cashflow Debt Unlevered Free Cash Flow Cash WACC Cost of Equity 8.75% 12.00% Year 0 24,043 33,222 38,212 9,700 Year 1 25,245 34,304 39,549 10,782 Year 2 26,507 38,058 40,933 14,536 Given only the above information, what is the Enterprise Value at the end of Year O? Assume end-of-year discounting. Year 3 27,832 43,234 42,366 19,712 Year 4 29.224 50,517 43,849 26,995 Year 5 30,685 55,480 45,383 31,958 Year 6 32,219 60,198 46,972 36,676
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.1.1MBA
Related questions
Question
Discounted Cash Flow Valuation - Calculating Enterprise Value
A discounted cash flow can be used to calculate either enterprise value or equity value.
Open the attached Excel file found above the question and go to the worksheet labeled: EV (Blank)
Calculate the company’s enterprise value at the end of Year 0 given the information in the Excel file. Assume end-of-period-discounting.
![Calculating Enterprise Value
All figures in USD thousands unless stated
Levered free Cashflow
Debt
Unlevered Free Cash Flow
Cash
WACC
Cost of Equity
8.75%
12.00%
Year 0
24,043
33,222
38,212
9,700
Year 1
25,245
34,304
39,549
10,782
Year 2
26,507
38,058
40,933
14,536
Given only the above information, what is the Enterprise Value at the end of Year O? Assume end-of-year discounting.
Year 3
27,832
43,234
42,366
19,712
Year 4
29,224
50,517
43,849
26,995
Year 5
30,685
55,480
45,383
31,958
Year 6
32,219
60,198
46,972
36,676](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01d01b29-ede7-42ba-8dcd-8c0b18e94cc8%2F3553c7ff-7ccf-40e4-8696-97e315e2bc47%2F5bfgmx_processed.png&w=3840&q=75)
Transcribed Image Text:Calculating Enterprise Value
All figures in USD thousands unless stated
Levered free Cashflow
Debt
Unlevered Free Cash Flow
Cash
WACC
Cost of Equity
8.75%
12.00%
Year 0
24,043
33,222
38,212
9,700
Year 1
25,245
34,304
39,549
10,782
Year 2
26,507
38,058
40,933
14,536
Given only the above information, what is the Enterprise Value at the end of Year O? Assume end-of-year discounting.
Year 3
27,832
43,234
42,366
19,712
Year 4
29,224
50,517
43,849
26,995
Year 5
30,685
55,480
45,383
31,958
Year 6
32,219
60,198
46,972
36,676
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
![Survey of Accounting (Accounting I)](https://www.bartleby.com/isbn_cover_images/9781305961883/9781305961883_smallCoverImage.gif)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning