14.17 Using the M&A Valuation and Deal Structuring Model accompanying this text (see the website address in the “Chapter Overview” section at the beginning of this chapter):

a. On the Valuation Worksheet, note the enterprise and equity values for Newco.

b. On the Summary worksheet under Incremental Sales Synergy, change incremental revenue to $200 million in the first year, $250 million in the second year, and $350 in the third year. What is the impact on Newco’s enterprise and equity values? (Hint: See Valuation Worksheet.) Undo changes or close the model but do not save the results.