Paginas Amarelas Case Study

Table of Contents

1         Introduction         2

2         determine the Medium and Long Term reaping Rates         4

2.1          harvest in the Telephone Directory Industry         5

2.1.1          rival         6

2.1.2         Demand for Telephone Lines         9

2.1.3         A Short Summary of the fruit Prospects in the Region         10

2.2         Estimation of the Growth Rates for genus Argentina         11

2.3         Estimation of the Growth Rates for Brazil         12

2.4         Estimation of the Growth Rates for Chile         13

3         Calculating the cost of Capital         13

3.1         The Godfrey and Espinosa (1996) moulding         14

3.1.1         Determining the Risk Free Rate         15

3.1.2         Determining ?adj         15

3.1.3         Determining the Market Risk Premium         17

3.1.4         Determining the Credit diffuse         17

3.1.5         Calculating the Cost of Capital         18

3.1.6         Criticisms of the Godfrey and Espinosa (1996) Model         19

4         Determining the Cost of Debt         20

5         Calculating WACC         20

6         Calculating the Present Value of Paginas Amarelas         21

6.1         Valuing the Argentinean operations         21

6.2         Valuing the Brazilian Operations         22

6.3         Valuing the Chilean Operations         22

6.



4         The Present Value of the Operations of Paginas Amarelas         23

7         Conclusion         25

8         Appendix A         27

9         Appendix B         28

10 References:         29

1 Introduction

The force back of this case study is to determine the value of Paginas Amarlas, and advise brazil nut Investimentos what the appropriate action would be, given the information available to them in 1996. Expected prospective events and forecasting techniques, together with the company process results are used to perform appropriate valuations. The options available to brazil nut Investimentos would be the sale or restructuring of Paginas Amarelas.

In order to value Paginas Amarelas, future cash flows would need to be projected, a long exam perpetual growth rate would need to be situated and the weighted average cost of capital (WACC) would need to be calculated using the cost of...

If you want to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper