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Financing New Ventures

In: Business and Management

Submitted By nickjohnson916
Words 1014
Pages 5
Nicholas Johnson
ETR 315 Financing New Ventures
Professor Gilles
Business Valuation Report

The Business Valuation report will discuss how these companies compare and which companies are performing. The report will give and in depth analysis for the financial forecasting and the business valuation models. The four companies Alex and Ani, I.T. source, Mastero technologies, and Veteran Corps of America.

The first company Alex an Ani cost of capital and the weighted average for the cost of equity and the cost of debt for each corporation. The cost of capital rate should be used as the discount rate for present value (PV) of the free cash flow (FCF) and terminal value (TV) of the business.The business valuation calculation for Alex an Ani show that the company is profitable and estimates for the company include the present value of the free cash flow (FCF) from the 5-year revenue and earnings forecast and the present value of the terminal value (TV) based on the free cash flow (FCF) in the fifth year using the cost of capital.
The combination of present values from discounted cash flows and discounted terminal values would represent the total business values for each of the four privately-held corporation.While this valuation was generated considering as many company, industry and location specific details as available, the value presented in this report is an automated estimation of the assets and liabilities. Some events and circumstances that might impact the overall valuation of a specific business Alex and Ani may not be taken into account for the purpose of this report.Valuation methods from the income, market and asset approach have been utilized to reach the valuation results for Alex and Ani company. The value given in this report is based on information provided by the company and other sources. This fair market value conclusion is the value of…...

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