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Category: Business and Industry
Date Submitted: 06/01/2014 03:40 AM
NOVA School of Business and Economics Spring Semester 2013/2014
REPORT TO THE BOARD OF DIRECTORS
Recommendations on Gannet’s acquisition and Capital Structure
Applied Corporate Finance Professor: Paulo Pinho T.A’s: Raul Afonso; Ricardo Barahona
Group 8: Daniela Gameiro #701 Luís Faria #715 Catarina Batista #750 Frederic Muller #774
APPLIED CORPORATE FINANCE
Cox Communications, Inc.
TABLE OF CONTENTS
Executive Summary......................................................................................................................3 1. Cox Communications, Inc. And the Market ...............................................................................4 2. Computing the NPV within Gannet’s Acquisition.......................................................................4
2.1. Weighted Average Cost of Capital (WACC) .............................................................................................. 5 2.2. Estimating Cash Flows .............................................................................................................................. 7 2.3. Discounting the cash flows ....................................................................................................................... 7
3. Short-term and Long-term Financing ........................................................................................9 4. Constraints on the financing needs ......................................................................................... 10
4.1. Cox Family............................................................................................................................................... 10 4.2. Financial Flexibility ................................................................................................................................. 11 4.3. Strong Balance Sheet .............................................................................................................................. 12...