Discount Cash Flow Valuation

1. Perform a DCF valuation of MW as of 2016 using the template given. Assume 500,000 in equity and a 5% cost of debt if the balance of deal is financed with debt. Assume a 9%WACC. Finally, assume that TV is 10.5 times year7 EBIT.

2. How much tax is avoided by using the level of debt financing in the deal?

3. What would be your valuation if operating margin remains at 57.4% throughout the forecast period?

4. What would you offer for the practice?