Electronix Inc. Valuation

by | Jan 6, 2025 | Accounting, Homework Help | 0 comments

Electronix Inc. Valuation
This assignment aligns with Outcome 7: Evaluate business valuation approaches and methodology in communicating findings to stakeholders.

Electronix Inc. manufactures electronic products. The company’s weighted average cost of capital is 8 percent. The company forecasted the following free cash flows for the next 20 years:

Cash Flows Table
Year Free Cash Flows
1 $15,000,000
2 $16,200,000
3 $21,000,000
4 $23,000,000
5 $27,000,000
6-10 $25,000,000 per year
11-20 $21,000,000 per year
Prepare a valuation report for Electronix Inc. using the discounted cash flow approach.
Identify the accounts taken into consideration in the discounted cash flow method.
Compare the difference between future income method and the discounted future cash flow method.
Your well-written paper must be 3 pages, in addition to title and reference pages. Include document and citation formatting per APA guidelines. Cite at least four peer-reviewed sources.

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