3. Here is a portion of the income statement of BuyerCo and ValueCo. These two firms are going to merge to create a firm NewCo. Because of the merger, the sales are going to increase by 2%, the COGS are going to decrease by 10% (because of better negotiated bulk buying) and SG&A are going to increase by 5%. What is the projected EBITDA for the NewCo in 2016 (after the merger)? [10 points] FIN 7290, Mergers and Acquisitions Problem Set Page 3 Income Statement BuyerCo Sales ValueCo Sales BuyerCo COGS ValueCo COGS BuyerCo Gross Profit ValueCo Gross Profit BuyerCo SG&A ValueCo SG&A BuyerCo EBITDA ValueCo EBITDA 2015 $4,771.7 2,600.0 $3,053.9 1,612.0 $1,717.8 988.0 $811.2 496.6 $906.6 491.4