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Hi John
I am so struggling with studying for P4 simply because there are so many formulae and so many calculations to perform. Everything is so confusing and I feel I’m running out of time
I am trying to learn from the solution as I go along. This question in particular the calculation is so long to follow. Where do I begin with this calculation. What sort of things should I be looking for?
There are so many ways to calculate valuation for mergers and acquisitions. How would I know which one to use
Thank you for your assistance
It is not a question of knowing different ways of calculating a valuation.
This questions specifically asked in the requirements, to value Oberberg based on the expected present value of the free cash flows discounted at an all equity rate, and then to adjust by other relevant cash flows.
That is exactly describing the adjusted present value approach, which is what you were expected to apply.
The requirements of the question will always tell you which approach that they want you to take, and you should always read the requirements first (before starting to look at the information in the body of the question).
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