Discussion Post: Discount Cash Flow Valuation
• Perform a DCF valuation of MW as of 2016 using the template given. Assume 500,000 in equity and a 5% cost of debt if the balance of deal is financed with debt. Assume a 9%WACC. Finally, assume that TV is 10.5 times year7 EBIT.
• How much tax is avoided by using the level of debt financing in the deal?
• What would be your valuation if operating margin remains at 57.4% throughout the forecast period?
• What would you offer for the practice?
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.