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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 84.8C

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