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4. How much should Cooper pay to acquire Nicholson? a. How reasonable are your stated prices? How does your main calculated price per share compare

4. How much should Cooper pay to acquire Nicholson?

a. How reasonable are your stated prices? How does your main calculated price per share compare to the current offer by Porter?

(Use the assumptions below to help answer this question and use the Cooper Excel Template provided in the Course Packet)

b. Do you need to include Interest in your valuation of Nicholson? Why or why not? (Hint: think back to capital budgeting. When you are discounting using WACC what are you effectively taking into account? Answer: Cash Flows of the ________ Firm)

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