According to carmikes sec filing jp morgan got 15 million


Question: According to Carmike's SEC filing, J.P. Morgan got $1.5 million upfront and $10.7 million upon completion of the deal for advising Carmike. In the filing, J.P. Morgan states "J.P. Morgan calculated the unlevered free cash flows that Carmike is expected to generate during fiscal years 2016 through 2025 based upon financial projections prepared by the management of Carmike ... J.P. Morgan also calculated a range of terminal values of Carmike at the end of the ten-year period ending 2025 by applying a nominal perpetual growth rate ranging from 1.0% to 2.0% to the unlevered free cash flow of Carmike during the terminal period of the projections. The unlevered free cash flows and the range of terminal values were then discounted to present values as of December 31, 2015 using a range of discount rates from 7.0% to 8.0%. (instead of $12.2 million), discuss what J.P. Morgan did well and not so well in terms of five key terminal value issues (including why terminal value is important).

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Finance Basics: According to carmikes sec filing jp morgan got 15 million
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