Calculate the terminal value using the multiple method

Assignment Help Finance Basics
Reference no: EM13265537

Webster Global Partners (WGP) is evaluating an investment in MiCasa, SA., a distributor of home appliances. As with any venture capitalist, they seek to sell out after 5 years. WGP estimates a free cash flow multiple of 2.9. Free cash flow in year 5 is expected to be $145 million. MiCasa, S.A. is expected to be sold at its terminal value. Calculate the terminal value using the multiple method.

Reference no: EM13265537

Questions Cloud

How fast must the deuterium nuclei be going to touch : Fusion reactors attempt to utilize the same nuclear reaction that occurs within the sun. Two deuterium nuclei will combine together to form helium if they are close enough, How fast must the deuterium nuclei be going to touch
Calculate the discount factor that will be applied : Orlando Pixie Dust is considering an option to buy some land in Brazil 9 years into the future. The acquisitions department discounts future projects at 2%. Calculate the discount factor that will be applied to the future cash flow.
What is the gain of an ideal amplifier connected to drive : A power amplifier employs an output stage whose gain varies from 2 to 12 for various reasons. What is the gain of an ideal (non varying) amplifier connected to drive It so that an overall gain with feedback of 100 ± 5% V/V can be achieved
Explain what happen to the density of liquid water : Describe what happen to the density of liquid water when its temperature is increased and/or decreased. properly cite your reference source(s) for this information
Calculate the terminal value using the multiple method : Free cash flow in year 5 is expected to be $145 million. MiCasa, S.A. is expected to be sold at its terminal value. Calculate the terminal value using the multiple method.
Negative message effectively : when you write a negative message what are your objectives? What are some strategies you can use to write the negative message effectively?
What would the net annual savings be : What is the NPV of accepting the lockbox agreement?
What are the requirements if af must be held : A power amplifier employs an output stage whose gam vanes from 2 to 12 for various reasons. What is the gain of an ideal (non varying) amplIfier connected to drive it so that an overall gain with feedback of 100 ± 5% V/V can be achieved
What fraction of the water boils away : A 45cm3 block of iron is removed from an 800?Cfurnace and immediately dropped into 200 mL of 20?C water. What fraction of the water boils away

Reviews

Write a Review

Finance Basics Questions & Answers

  Prepare a single journal entry to record all incurred cost

Keona Corporation pays 2800000 for a tract of land with two buildings on it. Keona consider to demolish building one and build a new store.

  What is the total amount paid by the corporation

A U.S. corporation has purchased currency call options to hedge a 70,000 pound payable. The premium is $.02 and the exercise price of the option is $.50. If the spot rate at the time of maturity is $.65, what is the total amount paid by the corporati..

  Partnership business structure over a corporation

Make an argument for using a partnership business structure over a corporation. Provide support for your argument.

  Computation of capital generation at a sales level

Computation of capital generation at a sales level and How much capital will Longfellow generate by this sale

  What are some of the different types of banks?

What are some of the different ways that banks can be differentiated?

  Compute projects payback period

Suppose your employer, hates the company's current telephone system. By investing $60,000 in a new phone system, he thinks that he can improve revenue through fewer misdirected sales inquiry calls,

  Thoughts regarding corporate compensation

What are your thoughts regarding corporate compensation and the potential need for new regulations given the current state of the economy, corporate bankruptcies and bailout of institutions?

  Foreign exchange risk-interest rate and exchange rates

In international cash management, managers have choice between managing only foreign exchange risk or managing foreign exchange and interest rate risk together.

  Calculation of operating profit margin

Calculation of Operating Profit Margin and Time interest earned and find how Spectrum's financial performance compares to their Industry for each calculated ratio.

  Relationship between risk and return

What is your interpretation of the relationship between risk and return? Describe the relationship by comparing the risk/return levels for U.S. securities versus foreign securities.

  Classification of equity security

On Dec 29, 2008, Sam Co. sold an equity security that had been purchased on January 4, 2007. Sam owned no other equity securities. An unrealized holding loss was reported in the 2007 income statement.

  At what discount rate is the npv just equal to zero

An investment has an installed cost of $567,382. The cash flows over the four-year life of the investment are projected to be $196,584, $240,318, $188,674, and $156,313.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd