AFM 371 Lecture Notes - Cash Flow, Weighted Arithmetic Mean, Manulife

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM 371
• Professor: Neil Brisley

Document Summary

Class 23 (today), final compulsory class, finish dcf from classnote 22, wrap-up q"s, review, exam discussion, q&a, goodbye, course evaluations. Big q&a amphi office hour" session, 1pm-3pm, weds 4 april. Final exam, 10th april, 2 hours, usual format. You are the 100% owner of holy scrap breakfast corp. (hsbc). The firm"s bank debt is currently ,000 and carries a 8%p. a. fixed interest rate. In the absence of further investment, you believe a reasonable trailing twelve months (ttm) tev/ebitda multiple for your firm is 9. The most recent earnings before interest and tax was ,000. Pizzaman is willing to invest , 000 into holy scrap breakfast corp. (hsbc) now in return for 20% of the firm"s equity. By the end of 2011, net working capital will be ,000. The existing machines will be sold at the end of. 2011 for their net book value of ,000 and immediately replaced by new machines costing ,000.