Please review the attachment. Please explain steps.
- What is the number in “???” for LA Kash cash flow table?
- What are the advantages and disadvantages of going public?
- What is the appropriate growth rate for calculating the cash flows, terminal cash flow, and cost of equity?
- What is the appropriate discount rate to calculate the price per share? Explain?
- Estimate the cost of equity using both methods.
- How your estimate of the cost of equity capital for LA KASH should be influenced by the fact that LA KASH is not a publicly held company and that the market, therefore, has little information on LA KASH Company?
- What are the estimates of cash flows per share and terminal cash flow per share?
- Estimate the most likely market value for LA KASH’s stock.