Question 1: Assuming Tottenham Hotspur continues in their current stadium following their current player strategy,
a. Perform a DCF analysis using the CF projections given in the case. Based on this DCF analysis, what is the value of Tottenham Hotspur?
b. Perform a multiples analysis. Based on the multiples analysis, is the value of Tottenham any different?
c. At its current stock price of £13.80, is Tottenham fairly valued?
Question 2: Using a DCF approach, evaluate each of the following decisions:a. Build the new stadiumb. Sign a new strikerc. Build a new stadium and sign a new strikerNote that the past 10 years of Premiership revenue and point total data suggest that for every 1% increase in a team's point total, a team could anticipate a 1.52% improvement in revenues.
Question 3: What would be the likely stock market reaction to a surprise announcement of each of the decisions considered in question 2?
Question 4: How do the data in case Exhibit 3 inform your assessment of how the stock market might value the addition of a new striker and his expected contribution to the team?