AT&T/McCaw Merger Negotiation.

1. What do you believe McCaw is worth? Prepare a careful DCF using the financial forecast of FCFs given in the case and in the associated spreadsheet. What key assumptions determine the range of high and low values in your valuation analysis? Also draw on any other valuation approaches and information that you can. For the sake of consistency, all groups should use a (low, "Darden") risk premium of 5.5%. We performed a DCF Analysis for two …

…counter with a list price before continuing negotiations. c). We are willing to pay up to $32.38 per share ($13,293 billion) Note: We plan to negotiate in terms of Enterprise Value as opposed to Per Share Price to avoid confusion of per share distributions and liquidity preference matters. We are planning to ASSUME all debt at closing and require minimum levels of NWC. Exhibit 1: DCF Analysis Exhibit 2: DCF Analysis Exhibit 3: Recent Comparable Transactions Exhibit 4: Recent Premiums Paid