medium · Corporate Credit Analysis distressed
In a distressed credit scenario, an analyst calculates a 'Liquidation Value' for assets and compares it to a 'Going-Concern Value' derived from a DCF of Unlevered Free Cash Flows.
If the liquidation value is $500M and the DCF value is450M, which value should the analyst adopt for recovery analysis?
- $0M
- $450M
- $500M
- $475M
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