Assignment- Equity Valuation, Business Plan Project and Comprehensive Presentation Summary
Part One: Equity Valuation
Bart Industries is about to be purchased by Kramer Enterprises. Both firms are in the rocks and mineral industry. As one of the founders of Bart Industries, you are concerned about the value of the equity in the firm. You have acquired the following data on your firm:
1. Bart has 200,000 shares of stock authorized, with 120,000 shares outstanding and held by the current owners.
2. The free cash flows for next year are estimated to be $642,000.
3. The WACC for the firm is currently 13%
4. Bart has $320,000 of outstanding debt.
5. The growth rate for Bart is estimated to be 5% for the future.
6. Bart has a surplus of cash in the amount of $985,000.
Required:
• What is the value of Bart's equity?
Part Two: Business Plan Project, Week 5, and Comprehensive Presentation Summary
Continue to work on your business plan. This week, you will be research franchising opportunities for your business, and the possibility of including venture capital as a source of funds. You will complete your business plan and prepare both a comprehensive report and presentation on your decisions and findings during this course.
Required:
1. Research and describe possible opportunities for franchising your business. Would you consider franchising your small business? Why or why not?
2. Research and describe possible opportunities for venture capital as a source of funding for small business. Would you consider venture capital to be a viable source of funds for your business? Why or why not?
3. Complete your business plan and submit a comprehensive report that integrates all decisions from earlier sections of the plan.
4. Construct a Microsoft PowerPoint presentation that summarizes the findings of yourBusiness Plan Project over all five weeks.