https://www.savvyessaywriters.net/wp-content/uploads/2020/10/output-onlinepngtools-25-1-300x48.png 0 0 admin https://www.savvyessaywriters.net/wp-content/uploads/2020/10/output-onlinepngtools-25-1-300x48.png admin2020-10-17 11:46:512020-10-17 11:46:51mechanics of moving to the optimal valuation
- If your firmâ€™s actual debt ratio is different from its â€œrecommendedâ€ debt ratio, how should they get from the actual to the optimal? In particular,
- Shouldtheyaltertheirexistingmix(bybuyingbackstockorretiring debt) or should they take new projects with debt or equity?
- What type of financing should this firm use? In particular,
- What type of cash flow (dividends, FCFE, or FCFF) would you choose to discount for this firm?
- What growth pattern (Stable, 2-stage, 3-stage) would you pick for this firm? How long will high growth last?
- *What is your estimate of value of equity in this firm? How does this compare to the market value?
- **What is the â€œkey variableâ€ (risk, growth, leverage, profit margins, etc.) driving this value?
- If you were hired to enhance value at this firm, what would be the path you would choose?