Effects of Restructuring on a Firm - Discounted Cash Flow

The user must define the following inputs:

- EBIT from existing assets

- Capital Invested in existing assets

- Tax rate

- Return on Capital on new investments

- Reinvestment Rate

- Length of growth period

- Debt Ratio

- Cost of Equity in high growth

- Pre-tax Cost of Debt in high growth

- Stable Growth Rate

- Return on capital in stable growth

- Cost of Equity in stable growth

- Cost of debt in stable growth

Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School (www.damodaran.com)