Evaluation:
Published: 19.10.2005.
Language: English
Level: Secondary school
Literature: n/a
References: Not used
  • Essays 'AT&T/McCaw Merger Negotiation ', 1.
  • Essays 'AT&T/McCaw Merger Negotiation ', 2.
Extract

1. What do you believe McCaw is worth? Prepare a careful DCF using the financial forecast of FCFs given in the case and in the associated spreadsheet. What key assumptions determine the range of high and low values in your valuation analysis? Also draw on any other valuation approaches and information that you can. For the sake of consistency, all groups should use a (low, "Darden") risk premium of 5.5%.
We performed a DCF Analysis for two scenarios: 1) assuming the purchase of the residual equity of LIN Broadcasting.…

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