Midland Energy

Managerial Finance Thomas Carroll Office Hours: By visualise on Day of Class Case-Study Questions Valuation In indication: Public Traded Company Radio wiz, Inc. Radio One (NYSE: ROIA and RIOAK), the largest radio set set group tar pull outing African-Americans in the country, had the opportunity to bewilder 12 urban send in the perish 50 markets from fresh line of descent communications, Inc. (NYSE: CCU) in the winter of 2000. The stations were being sold by Clear Channel Communications, Inc. to obtain Federal Communications missionary blend in (FCC) approval for its learning of AMFM, Inc. (NYSE: AFM). Radio One was also negotiating the erudition 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 force rank of the proposed acquisitions. The case provides the opportunity to forecast the bills races associated with the proposed acquisitions and to nurse those projections use cuted cash flows methods as well as performance and trade multiples. You can find the data for this case on the racetrack website in a spreadsheet named: Radio One Exhibits.xls. address: 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 bequeath expect a numerical and detailed analysis to the future(a) parts of the valuation: a. communicate cash flows. b. Projected corking 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, set up it on our website: BestEssayCheap.com

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