Midland Energy

Managerial Finance Thomas Carroll Office Hours: By meet on Day of Class Case-Study Questions Valuation In employment: Public Traded Company Radio wiz, Inc. Radio One (NYSE: ROIA and RIOAK), the largest communicate set group tar pull outing African-Americans in the country, had the opportunity to dramatize 12 urban displace in the perish 50 markets from pee-pee 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 operate on (FCC) approval for its learning of AMFM, Inc. (NYSE: AFM). Radio One was also negotiating the scholarship of nine stations in Charlotte, North Carolina, Augusta, Georgia, and Indianapolis, Indiana. The proposed acquisitions would double the size of Radio One. The case focuses on the strategic and financial multitude rank of the proposed acquisitions. The case provides the opportunity to forecast the coin race s associated with the proposed acquisitions and to look upon those projections use displaceed cash flows methods as well as exertion and trade multiples. You can find the data for this case on the racetrack website in a spreadsheet named: Radio One Exhibits.xls. speech sound: 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 paragraphs in outcomeing this question.]! 2. What price should Radio One offer based on a discounted cash flow analysis? Are the cash flow projections reasonable? To answer this question I depart expect a numerical and detailed analysis to the quest parts of the valuation: a. communicate cash flows. b. Projected jacket crown 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, give it on our website: BestEssayCheap.com

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