Business Valuation

Using the 2015 financial statements of Golden Enterprises, Inc.; complete the following:

• Beginning with 2015 normalized net income of $1.6 million, determine 2015 net cash flow using the direct equity method (2015 only)
• Determine a rate that you expect cash flows to increase between 2015 and 2016
• Assuming a cost of capital of 15%, determine the value of Golden Enterprises using the capitalized cash flow approach and your estimate of net cash flows from above step

 Prepare a 1-2 page deliverable that shows

1. A table showing your determination of the net cash flow using the direct equity method
2. Your growth rates with a short explanation; include how you expect the sales growth to change over the next five years
3. Your valuation determination and how you determined it