Effects of Restructuring on a Firm - Discounted Cash Flow
Originally published: 12/07/2016 10:55
Publication number: ELQ-54326-1
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Effects of Restructuring on a Firm - Discounted Cash Flow

This modesl quantifies the effects of firm restructuring

Description
The user must define the following inputs:
- EBIT from existing assets
- Capital Invested in existing assets
- Tax rate
- Return on Capital on new investments
- Reinvestment Rate
- Length of growth period
- Debt Ratio
- Cost of Equity in high growth
- Pre-tax Cost of Debt in high growth
- Stable Growth Rate
- Return on capital in stable growth
- Cost of Equity in stable growth
- Cost of debt in stable growth

Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)

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Further information

Outputs:
- Value of Firm
- Change in Value
- As percent of firm value


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