Calculating Enterprise Value All figures in USD thousands unless stated Levered free Cashflow Debt Unlevered Free Cash Flow Cash 8.75% 12.00% Year D 24,043 33,222 38,212 9,700 Year 1 Year 2 25,245 26,507 34,304 38,058 39,549 40,933 10,782 14,536 WACC Cost of Equity Given only the above information, what is the Enterprise Value at the end of Year 0? Assume end-of-year discounting. Year 3 27,832 43,234 42,366 Year 4 29,224 50,517 43,849 19,712 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 8.75% 12.00% Year D 24,043 33,222 38,212 9,700 Year 1 Year 2 25,245 26,507 34,304 38,058 39,549 40,933 10,782 14,536 WACC Cost of Equity Given only the above information, what is the Enterprise Value at the end of Year 0? Assume end-of-year discounting. Year 3 27,832 43,234 42,366 Year 4 29,224 50,517 43,849 19,712 26,995 Year 5 30,685 55,480 45,383 31,958 Year 6 32,219 60,198 46,972 36,676
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A 165.
Subject:- finance
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The answer choices for this question are:
A) $151,854
B) $175,514
C) $155,290
D) $193,501
When calculating the enterprise value at the end of year 0, what calculation must be made in order to arrive at one of the four answers above?
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