15.16 Using the M&AValuation & Deal Structuring Model accompanying this text (see the website address in the Chapter Overview section at the beginning of this chapter) and the data contained in the cells as a starting point, complete the following: (Appendix)

a. What is the enterprise and equity value of Target on the Valuation Worksheet?

b. On the worksheet named Target Assumptions, increase COGS as a percent of sales by one percentage point

(i.e., 0.43 to 0.44). What is the impact on the Target’s enterprise and equity values? (Hint: See Valuation worksheet.) Undo the change or close the model but do not save the results in order to restore the model’s original data.