Which THREE of the following pieces of information would be needed to calculate a discounted cash flow valuation for Kewley Co(company under takeover bid)?
-Synergies after the takeover
-Profits on disposal of assets post takeover (what is it?
-Value of Kewley Co's debt
-Appropriate discount rate
-Bidding Co's existing price earnings ratio
-Kawley Co's budgets for the past two years
Sir, Answer says: Discounted cash will include :
1)"cash proceeds of any post-takeover disposals (but not the profit values)" - what is it?
2)Post tax (but before interest) operating cash flows
3)Any preference share dividend payments due
4)any other cash due
5)time horizon for the evaluation
Please comment on each one explaining which is what and why please.
P.S i cant remember whether ive seen this on lecture notes sir. Please refer.
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Cash flows calculation
9y ago#1Sorry, but this is getting ridiculous - I do not have time to give answers to questions that you have found elsewhere. You must have printed answers, so I don't understand why you are wanting me to repeat comments that must be already in the answers!.
If they are past exam questions or questions from the BPP revision kit, then ask whatever it is in the answer that you are not clear about.
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