(ii) base on the DCF estimate (Enterprise Value), it is easily computed what this implies for the EV/EBITDA ratio; the value of the E is is easily computed as intumesce.
(iii) the PE method is more(prenominal) complicated, as it requires an estimate of the debt capacity of the company, as well as the remaining debt at time of exit, and therefore alike the size of the redemptions every year; the PE method looks at the valuation from the perspective of the new owner alone.
(NOTE: While PE funds mystify the owner of a business, in practice they may in any case provide loans to the business they own, in order to create more tax shield benefits for the business, and thus for the owner of the business, ie themselves. In the case of Ziggo, this had been done in a very raptorial way, with the PE owners exchanging (swapping) the remaining debt for equity right before the IPO, so that Ziggo carries poor debt now.)
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2. Sustainability of public finances??????20 points
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a.
Lets initial define the following variables:
G = government spending excl following payments?T = tax receipts of the government
R = nominal quest rate????D = debt of the government
Y = GDP??????? = indicates the absolute salmagundi in a variable
?(Z)/Z = relative change in variable Z???subscripts 0, 1: refer to the year.
Assume that either payments take place once a year.
The first function to realize is that the budget dearth is equal to the primary deficit plus the touch on payments, with the size of the interest payments equal to the interest rate times the level of the debt at the beginning of the year, ie the interest rate times the size of level of the debt at the end of the previous year. So the size...If you want to get a full essay, order it on our website: Ordercustompaper.com
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