5.8. Great Dane Capital can pay a maximum price of $4.9 billion for the equity of North...

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5.8. Great Dane Capital can pay a maximum price of $4.9 billion for the equity of North American Labels or $49 a share. The sum-of-the-parts valuation follows:

Pinkerton Pipedream Invested capital (millions) $2,000 $1,000 Growth rate 5% 10%

ROC first 10 years 10% 20%

ROC thereafter 10% 12.8%

WACC 6.54% cost of capital

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Valuation Mergers Buyouts And Restructuring

ISBN: 9780470128893

2nd Edition

Authors: Enrique R. Arzac

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Question Posted: Oct 25, 2024 06:00 AM

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Valuation Mergers Buyouts And Restructuring

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