"SoulCycle - Startup Valuation: IPO" Assignment Questions

Instructions:

Your group should upload one electronic copy of your Excel solution on
Canvas. Assignments submitted late will not be accepted. You should submit a solution
to all “Assignment Questions”. Your solution should be formatted and set out so that it is
easy to read, clearly show your working, the logic behind your answers, and any
assumptions you made in the analysis.

Assignment Questions

3. Estimate the weighted average cost of capital. You should estimate the WACC for SoulCycle at the optimal capital structure. To estimate the asset beta for SoulCycle choose comparable firm(s) from those listed in Exhibit 7. Justify your choice. Assume that cash is the only non operating assets at these comparable firms.