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Becky is a financial analyst specializing in identifying potential buyout targets. She has been interested in Bechannel Corporation for a year. She believes that the management at Bechannel has not been doing a good job. Now Bechannel is financed entirely with equity. Becky thinks that Bechannel should focus on its core business by selling some divisions. However, the management does not seem to want any change. Becky thinks that Bechannel is a good target for a leveraged buyout. A leveraged buyout (LBO) is the acquisition by a small group of equity investors of a public or private company. Generally, an LBO is financed primarily with debt. The new shareholders service the heavy interest and principal payments with cash from operations and/or asset sales. Shareholders generally hope to reverse the LBO within three to seven years by way of a public offering or sale of the company to another firm. A buyout is therefore likely to be successful only if the firm generates enough cash to serve the debt in the early years and if the company is attractive to other buyers a few years down the road. Potential LBO partners have asked Becky to provide projections of the cash flows for Bechannel. Becky has provided the following estimates (in millions) of cash flows (assuming that, after LBO, the company can sell some divisions to provide cash needed for NWC and capital expenditure. So, Becky and her partners do not need to invest in NWC and capital expenditure after LBO): Year 2021 2022 2023 2024 2025 Depreciation (in millions) 450 450 450 450 450 EBIT 3000 3000 3000 3000 3000 At the end of 2025, Becky estimates that the growth rate in unlevered cash flows will be 6.0% a year. Becky and her partners believe that in 2025 they will be able to sell the company to another party or take it public again. Becky thinks the company’s debt–equity ratio should be at 0.4 in the long term after 2025. They are also aware that they will be able to borrow $6000 million to pay part of the purchase price now (the end of 2020). Because of the high debt level, the debt will carry a yield to maturity of 12.0% for the next five years. The cost of debt will drop to 6.0% after 2025. The company currently has a required return on assets of 15.0% (unlevered cost of capital). The corporate tax rate is 21%. The company has currently 310 million shares. If Becky and her partners decide to undertake the LBO, what is the most they should offer per share?

The expression -120+13m represents a submarine that began at a depth of 120 feet below sea level and ascended at a rate of 13 feet per minute. (m). Write an expression that could be used to describe the situation.

Which is an example of a locomotor movement? A. Twisting B. Leaning C. Jumping D. Swaying

Which point on the y-axis lies on the line that passes through point G and is parallel to line DF? (–2, 0) (0, –2) (0, 4) (4, 0)

3-(12-6÷3)+7(3×2-5)​

c) If C.P. = Rs 660, loss percent = 5% find S.P.d) If C.P = Rs 530, profit percent = 20%, find S.P.​

True or False: The Shang dynasty's system of writing could be used with different languages.1.True2.False​

Which word describes the actions of the universal negro improvement association as compared to other african american groups of the time, such as the national association for the advancement of colored people? passive ineffective unconventional violent

What type and how many CND Consoles are onboard

Which of the following was not a natural resource which Pacific Coast Indians used for food. A. Berries B. Corn C. Clams D. Fish

what was the first state to leave the union​

Which equation could be used to solve for the measure of angle Q? Circle N is shown with a quadrilateral OPQR inscribed inside it. Angle O is labeled x degrees. Angle P is labeled y degrees. Angle Q is labeled z degrees. Angle R is labeled w degrees z − (w + x) = 360 z + w + x = 360 z + x = 180 z + w = 180

If you put $525 into a savings account that paid a simple interest rate of 6.5%, how much would be in your account after two years? How much interest did you earn?

The number of bacteria N­ at a certain time t is given by N = 100et /10, when there are 100 bacteria at time t = 0 hours. Find how many hours t it takes for the bacteria to double (that is, increase from 100 to 200 bacteria). [Use either ln(2) ≈ 0.7 to approximate your answer as appropriate.]

How are excess salts that accumulate in cells transferred to the blood stream so they can be removed from the body?

What's the answer someone please help!

Dwarf stars are smaller than our sun. How can they be so bright?

According to the James-Lange theory, emotional states (preceded/follow) physiological responses

Informing parents of the support services that the school is providing to help students cope with the incident a. Why is it important to communicate support services to parents? b. How can schools effectively convey information about support services to parents? c. Should schools involve parents in the development of support programs? d. Is it the sole responsibility of schools to address students' psychological well-being?

Read the excerpt from "President Kennedy's Speech at Rice University." William Bradford, speaking in 1630 of the founding of the Plymouth Bay Colony, said that all great and honorable actions are accompanied with great difficulties, and both must be enterprised and overcome with answerable courage. What is the meaning of enterprised as it is used in the excerpt? rejected attempted supported avoided

World War I began when Austria-Hungary declared war on Serbia in 1914. Which of the following directly caused other countries like Germany, Britain, France, and Russia to join the war? They wanted the chance to attack and invade Serbia, too. They had alliances with countries that were involved. Their armies started fighting each other without permission. They needed to join a war to improve their economies.

A rectangle is graphed on the coordinate grid. On a coordinate plane, side J has points (negative 5, 4) and (3, 2), side K has points (3, 2) and (0, negative 10), side L has points (negative 8, negative 8), and side M has points (negative 8, negative 8) and (negative 5, 4). Which represents the equation of a side that is perpendicular to side K? y = one-fourth x minus 10 y = negative one-fourth x minus 10 y = 4 x + 24 y = 4 x minus 10

10 pangungusap sa pag kilatis ng mga produkto-Filipino

How many electrons are unpaired in the orbitals of nitrogen?

6^-6/ 6^-5= Write in form 6^n