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- Why is SKS seeking to raise external finance? - What methods might one use to value SKS? What is the value of a single SKS branch? Value the branch by discounting cash flows to equity. Cash flows to equity = Net income - Depreciation + Capital Expenditure + Net New Borrowing. Discount equity cash flows at the equity discount rate; you may assume an equity risk premium of 8%. - What are the key determinants of the value of a single branch? - Assuming that SKS expands its branch network according to the schedule in Exhibit 3, what is a fair value for SKS, the firm? - Evaluate the offers SKS is facing. What are the advantages and disadvantages of each?
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