Business Finance Homework Help

Your boss was duly impressed with your work on AMC and so instead of giving you few days off,

you are immediately assigned a new job. This time you are in charge of assessing the

profitability of a leveraged acquisition your bank is planning to offer to one of your best private

equity clients.

One of your colleagues in the Capital Market teams has recently brought to your boss’s attention

that the board of La-Z-Boy Incorporated (LZB) would be interested in selling the company for

$41.4 dollars per share (representing a 20% premium over the current trading price of $34.53,

as of 06/09/2021). Your boss has decided that this offer should be brought to the attention of a

private equity sponsor with whom your bank works on a regular basis.

Your job is to assess how profitable this deal could be for the private equity company given a

set of reasonable assumptions on the future of the company and the financing cost of the

operation.

The output for this assignment will be one Excel file with the result of your valuation. The file

Assignment 2_XXXXX.xlsx provided in Canvas will be the shell in which you will do your

valuation. Prior to submitting the file, you should change the XXXXX in the file name with your

student ID number.

In performing this valuation, you are not allowed to use any information outside of what can be found in FactSet.