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- March 13, 2023 at 7:05 pm #681258
The forward was the best option for me. In terms of the amount to pay.
March 12, 2023 at 3:28 pm #681188If you remember in the Exitus Co question we were to find the Equity Vale of Acta. After the FCF you would end up with the value of the entire firm inclusive of debt but they asked for the equity value. A pointer to the fact that we will arrived at the overall value would be that we discounted with the Cost of Capital. But we were given a debt to equity ratio of Exitus Co as 30:70. For me I stated in my excel sheet that “assume the debt to equity ratio of Acta Co is same as Exitus Co”. I then multiplied my FCF by 70% to arrive at my Equity value of Acta Co. Anyone with an alternative approach at arriving at the Equity value of Acta Co?
March 10, 2023 at 10:15 pm #681047The first question, The one on how an anlayst said the Parent company’s equity value was low because of the subsidiary and asked for reasons that was so. Anybody with ideas on how to answer that?
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