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1. What is the maximum price that Monmouth can pay for Robertson? To answer this question: a . Do a discounted cash flow analysis using

1. What is the maximum price that Monmouth can pay for Robertson? To answer this question:

a . Do a discounted cash flow analysis using the numbers in the case. Comment on the reasonability of the forecast of margin improvements.

b. Use multiples valuation to determine the maximum price. Use market multiples using prospective EBIAT.

c. Based on the analysis above, what is the maximum price Monmouth can pay for Robertson? Explain.

F F

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