Webster Global Partners (WGP) is evaluating an investment in MiCasa, SA., a distributor of home appliances. As with any venture capitalist, they seek to sell out after 5 years. WGP estimates a free cash flow multiple of 8.9. Free cash flow in year 5 is expected to be $104 million. MiCasa, S.A. is expected to be sold at its terminal value. Calculate the terminal value using the multiple method.
Webster Global Services has a Debt-to-Equity Ratio of 0.2. What is the percentage of capital that is equity?
Grokster Holdings has a levered beta of 1.5 with a D/E ratio of 2 . The tax rate is 30%. Assuming debt is risk-free, estimate the unlevered equity beta.
Webster Global Services has a Debt-to-Equity Ratio of 0.9. What is the percentage of capital that is debt?
Webster Global Services has outstanding debt of 84 and equity of 34. Calculate the debt-to-equity ratio (as a percentage).
Swamp and Sand Industries has outstanding debt of 24and equity of 19. Calculate the debt as a percentage of total assets.