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Hello, We have a midterm 2 next Wednesday, March 24th. The midterm will run from 2.10 to 5.00 (so 170 min). The rules: It will be Excel based – I will provide financial statements and ask for various...

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Hello, We have a midterm 2 next Wednesday, March 24th. The midterm will run from 2.10 to 5.00 (so 170 min). The rules: It will be Excel based – I will provide financial statements and ask for various valuations of a company. It will cover material after midterm 1 (Ch 7,8,9,11) It will be OPEN BOOK, OPEN RESOURCES – use whatever you need. This means I will be grading with that in mind – that you had access to resources. I will be looking for quality analysis and critical thinking. Communicating with other classmates will not be allowed. If I discover similar answers, I will investigate. It will be timed in Canvas and I will require the Excel upload. I will have google meet open to answer questions, but I will NOT require you to be on camera. If you need extra time, reach out to SAS (but FYI, if you have an accommodation document I always provide extra time anyway, according to the document). How to prep Review live class videos and asynchronous lectures. Review HW questions. Supplement by reading textbook (textbook is a good background. ONLY the concepts covered in class or videos will be tested). Practice numerical questions in Excel – I cannot stress this enough. Practice is everything. Try solving all HW and lecture problems on your own. Especially if your struggled with numerical problems in Midterm 1. If you have any questions beforehand – feel free to reach out via e-mail. Good luck with your prep!
these are the instructions from the professo
It will be chapter 7, 8, 9, 11
to be done on excel
https:
learn.ontariotechu.ca/courses/11576
username : XXXXXXXXXXPassword : L1R2M9
This exam will be at 2:10 pm , Toronto Canada on March 24.
on the side where the icons are, if you click the second one down it says courses
then click XXXXXXXXXXEquity Asset Analysis – 74697
this is the course I need the exam fo
then, the exam will be called Midterm 2 under the assignments tav
it will become available at 2:10 pm on March 24
The Course is called Equity Asset Analysis
BUSI 3405
Answered 3 days After Mar 20, 2021

Solution

Himanshu answered on Mar 24 2021
159 Votes
FCFF
    Revenues historical    200,000,000
    growth rate of revenues    3%
    gross profit margin    45%
    depreciation    2%    of revenues
    SG&A    24%    of revenues
    Capital Expenditures    125%    of depreciation
    Additional Cap Ex    15%    of incremental revenues
    Working Capital Investment    8%    of incremental revenues
    marginal tax rate on EBIT    35%
    FCFF
    Revenues    206,000,000
    Gross profit    92,700,000
    SG&A    49,440,000
    EBITDA    43,260,000
    Depreciation    4,120,000
    EBIT    39,140,000
    Tax    13,699,000
    Operating income after tax    25,441,000
    Adjustments:
    Depreciation    4,120,000
    Capex     5,150,000
    Additional Capex    900,000
    Working Capital    480,000
    FCFF    23,031,000
CCM and buildup
    FCFE 1    2.5    million
    growth    3%
    risk free rate    4.50%
    equity risk premium    5%
    size...
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