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    End Term Examination Corporate Restructuring and Business Valuation TERM IV, PGP, 2020 Name - Puneet Garg Roll No - 19P101

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    Puneet Garg
    1. The document appears to be an exam paper containing multiple questions related to corporate restructuring, business valuation, and debt schedules. 2. It includes calculations of cash flows, debt schedules, and equity values using multiples and discounted cash flow methods. 3. The questions ask the student to calculate cash flows, complete debt schedules, use multiples to determine equity values, and apply the backward induction method to calculate maximum equity investment using the terminal and discount cash flow values provided.

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    End Term Examination Corporate Restructuring and Business Valuation TERM IV, PGP, 2020 Name - Puneet Garg Roll No - 19P101

    Uploaded by

    Puneet Garg
    34 views7 pages
    1. The document appears to be an exam paper containing multiple questions related to corporate restructuring, business valuation, and debt schedules. 2. It includes calculations of cash flows, debt schedules, and equity values using multiples and discounted cash flow methods. 3. The questions ask the student to calculate cash flows, complete debt schedules, use multiples to determine equity values, and apply the backward induction method to calculate maximum equity investment using the terminal and discount cash flow values provided.

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    19P101_PuneetGarg_CRBV

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    1. The document appears to be an exam paper containing multiple questions related to corporate restructuring, business valuation, and debt schedules. 2. It includes calculations of cash flows, debt schedules, and equity values using multiples and discounted cash flow methods. 3. The questions ask the student to calculate cash flows, complete debt schedules, use multiples to determine equity values, and apply the backward induction method to calculate maximum equity investment using the terminal and discount cash flow values provided.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    34 views7 pages

    End Term Examination Corporate Restructuring and Business Valuation TERM IV, PGP, 2020 Name - Puneet Garg Roll No - 19P101

    Uploaded by

    Puneet Garg
    1. The document appears to be an exam paper containing multiple questions related to corporate restructuring, business valuation, and debt schedules. 2. It includes calculations of cash flows, debt schedules, and equity values using multiples and discounted cash flow methods. 3. The questions ask the student to calculate cash flows, complete debt schedules, use multiples to determine equity values, and apply the backward induction method to calculate maximum equity investment using the terminal and discount cash flow values provided.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 7

    END TERM EXAMINATION

    Corporate Restructuring and Business Valuation


    TERM IV, PGP, 2020

    Name - Puneet Garg

    Roll No - 19P101

    Q1. Calculate Cash Flows

    2021P 2022P
    Revenue 537300 597370.14
    EBIT 39507.44 45583.351792
    Revolver Interest 2460.5 3332.805194775
    Term Loan Interest 5869.79166666667 10062.5
    Interest on Senior notes 11101.5625 19031.25
    PBT 20075.5858333333 13156.796597225
    Tax 8030.23433333333 5262.71863888999
    PAT 12045.3515 7894.07795833499
    Free Cash Flow to Farm 12926.464 17337.3858752
    ECF Available for Debt Payment 1267.3515 -766.219904799989
    Capital Cash Flow 20699.2056666667 29406.4563952

    Q2. Complete the Debt and Capitalization Schedule (As at 31 st March)

    2021P 2022P
    Revolver 48042 46774.6485
    Term Loan B 125000 125000
    Senior subordinated notes 175000 175000
    Equity

    Q3.Using multiples determine the followings

    Equity Value in 2025 Using P/E Multiple  248580.21761589


    IRR of LIBIYO
    Enterprise Value in 2020 using forward EBITDA Multiple 
    Equity Value in 2020 based EBITDA Multiple 

    Q4.Using Terminal value calculated above and applying Backward Induction Method calculate the M
    2020 2021
    Equity Value 
    Weight of Equity
    Cost of Equity

    Q5. Provide the following information for the equity value

    Fair Market Value Fair Value


    Cash Flow Model
    Multiple Valuation
    Valuation

    (10 Marks)

    2023P 2024P 2025P


    664156.121652 738408.776052694 820962.877215385
    50516.8105223456 55192.5099387438 63099.6125498954
    3288.25778955 3226.41470582754 2956.45467617178
    10062.5 10062.5 10062.5
    19031.25 19031.25 19031.25
    18134.8027327956 22872.3452329162 31049.4078737236
    7253.92109311823 9148.9380931665 12419.7631494894
    10880.8816396773 13723.4071397497 18629.6447242341
    21188.6096160474 25350.0281711214 30005.0293206528
    1759.40494231737 5920.82349739144 10650.0363473898
    34141.4127318674 38302.8312869414 42908.3579694949

    (6 Marks)

    2023P 2024P 2025P


    46774.6485 45015.2435576826 39094.4200602912 7.03%
    125000 125000 125000 8.05%
    175000 175000 175000 10.88%

    (4 Marks)

    duction Method calculate the Maximum possible Equity Investment


    (6 Marks)
    2022 2023 2024 2025
    236292.98252461 248580.2176

    0.052

    (4 Marks)
    1. FCFF Calculation

    2021P 2022P 2023P 2024P 2025P


    Revenue 537300 597370 664156 738409 820963
    WC 96714 107527 119548 132914 147773
    EBITDA 60607.44 67383.35 74916.81 83292.51 92604.61
    Depreciation 21100 21800 24400 28100 29505
    EBIT 39507.44 45583.35 50516.81 55192.51 63099.61
    NOPAT 23704.5 27350 30310.1 33115.5 37859.8
    Add: Depreciation 21100 21800 24400 28100 29505
    Less: Capex 19500 21000 21500 22500 22500
    Less: Inc in WC 12378 10812.6 12021.5 13365.5 14859.7
    FCFF 12926.5 17337.4 21188.6 25350 30005

    EBIT 39507 45583 50517 55193 63100


    Interest Expense 19431.9 30172.7 32382 32382 32258.3
    EBT 20075.6 15410.7 18134.8 22810.5 30841.3
    Less:Tax@40% 8030.23 6164.27 7253.92 9124.2 12336.5
    PAT 12045.4 9246.41 10880.9 13686.3 18504.8

    Cash Flow available for debt repayment


    2020E 2021P 2022P 2023P 2024P 2025P
    PAT 14445 12045.4 9246.41 10880.9 13686.3 18504.8
    Depreciation and Amortizatio 17520 21100 21800 24400 28100 29505
    Capex 17179 19500 21000 21500 22500 22500
    Change in Working Capital 2828 12378 10812.6 12021.5 13365.5 14859.7
    Cash flow available (ECF) 11958 1267.35 -766.22 1759.4 5920.82 10650

    Debt Schedule
    2020E 2021P 2022P 2023P 2024P 2025P
    Revolver 60000 48042 46774.6 46774.6 45015.2 39094.4 7.03%
    Term Loan 125000 125000 125000 125000 125000 125000 8.05%
    Senior Subordinate Notes 175000 175000 175000 175000 175000 175000 10.88%
    P/E 2025 Revenue Equity Beta
    ABC 15.8 9488.8 149923 1
    JAG 12 4115.3 49383.6 1.1
    Thigh 7.9 1836.7 14509.9 1.3
    Lizclaib 10.9 3186.7 34735 1.2
    18627.5 248552 1.15

    Average P/E 13.3433

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