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This is a Finance case stuy i need some writing and caluculation I will upload the articles and the word document and excell Business valuation file please use all the infornation in the artcles and the excell file with all the exhibit. Make a separate tab for each question for excell file as to for exmaple if you use exhibit 11 for question 2 then add sheet with Ex 11 #3 something like that. this is justa examples.
Please see the details for this paper and question i will attached this papaer as well.
As i mention please make sure showed every calculation you will doing on the excell sheet and also used the word document and answered all the question very clear exaplainingl.
The Buyout of AMC Entertainment Report Template
Respond to the five questions below, and submit this report using the assignment tab in Learn by the time and date online.
Note: you must do your own work on this assignment. Incidents of plagiarism will result in a failing grade for the course, and be reported to the University Office of Student Conduct. Please type your initials to acknowledge that you understand this: _____
Additional information for the case: in your calculations, use a risk-free rate of 4.5%, a market risk premium of 6%, and a tax rate of 41.0%. The $169.9M in Marquee Holdings notes does not pay cash interest – the interest is payment-in-kind (PIK). For the sake of simplicity, assume that the PIK interest is not tax deductible.
1. Describe how the environment for leveraged buyouts has changed from the late 1980s to the present. In your opinion, which of these changes has had or will have the most influence on LBO sponsor returns going forward?
2. What are the positives and negatives of conducting LBOs in the movie industry? In what ways does AMCE conform or not conform to an “ideal LBO target”?
3. Why does JPMP want to own AMCE? In particular, what are the value-creating opportunities for this transaction?
4. What are the main risks of the transaction? If things do not go as planned, what downside protection does JPMP have?
5. What offer price per share do you propose JPMP bids for AMCE if JPMP wishes to meet its targeted return of 20% on this type of investment? Support your answer with calculations. The case provides projections of free cash flows. You need to consider debt service resulting from the LBO, use the APV method, and forecast equity residual cash flows. Estimate a terminal value based on information provided in the case, and explain your estimate. Discount the equity residual cash flows at 20% to determine JPMP’s offer price.
Submit an Excel file with your work – it must be only one worksheet, with all calculations clearly explained in the text – I will not click on cells to check formulas.