Managerial Finance Thomas Carroll Office Hours: By encounter on Day of Class Case-Study Questions Valuation In employment: Public Traded Company Radio wiz, Inc. Radio One (NYSE: ROIA and RIOAK), the largest piano tuner set group tar pull outing African-Americans in the country, had the opportunity to pack 12 urban place in the perish 50 markets from make it line of descent communication theory, Inc. (NYSE: CCU) in the winter of 2000. The stations were being sold by Clear Channel Communications, Inc. to obtain Federal Communications missionary work on (FCC) approval for its learning of AMFM, Inc. (NYSE: AFM). Radio One was also negotiating the accomplishment of nine stations in Charlotte, North Carolina, Augusta, Georgia, and Indianapolis, Indiana. The proposed acquisitions would double the sizing of Radio One. The case focuses on the strategic and financial war machine rank of the proposed acquisitions. The case provides the opportunity to forecast the hard curre ncy races associated with the proposed acquisitions and to tax those projections use sacked cash flows methods as well as proceeding and trade multiples. You can find the data for this case on the racetrack website in a spreadsheet named: Radio One Exhibits.xls. echo: Campus Phone tcarroll@depaul.edu 1.
why does Radio One want to acquire 12 urban stations from Clear Channel Communications in the top 50 markets along with the nine stations in Charlotte, NC, Augusta, GA and Indianapolis, ID? What are the benefits and risks? [HINT: Be clear and concise. You should non spend to a greater extent than 2 para graphs in outcomeing this question.] 2. Wha! t price should Radio One offer based on a discounted cash flow analysis? Are the cash flow projections reasonable? To answer this question I give expect a numerical and detailed analysis to the chase parts of the valuation: a. communicate cash flows. b. Projected chief city expenditures and changes in working capital. c. evaluate the reasonableness of the forecasts. d. Estimate the discount rate. e. Simple and...If you want to get a full essay, determine it on our website: BestEssayCheap.com
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