MGT 181 Enterprise Finance CASE STUDY #3 Mary Fernandez is a student in the Fall Quarter class of Enterprise Finance. It is now 7:30 AM and she is...

Please complete an initial model for John’s company for the first two years. (This will require a month by month analysis.) What is the amount of capital needed? Assuming a required rate of return by investors of 20% per annum and the sale of the company at the end of the second year at seven times Year 2 EBITDA what is the company worth? (Please note that when discounting monthly cash flows you will need to divide the interest rate by 12.) What do you think about this deal? What questions do you need to ask if you were an investor?