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4. Merger analysis - Corporate valuation nsodel Valuabiok of the target compaty is a critical aspect of a morger tramsaction. Different methods are vied in

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4. Merger analysis - Corporate valuation nsodel Valuabiok of the target compaty is a critical aspect of a morger tramsaction. Different methods are vied in acoulsition. valuatons axch as the corporate valuation method, the adjusted present value approach, the free cash flew to equity apcroach, and so on. Elanche Inc. is eugeted to generate a free cash flow (FCF) of 3162.00 migion this year (FCF=5162.00 million), and the fCF is eapected to grow at a rate of 19,00 ower the following two years (FCF2 and FCF3), Mfter the thind yrac, hawever, the FCF it expected ta grow at a comstaet rate ef z.10*h per vear, whlch will last forever (FCF4)-Blanche Inc.s aeighted average cest of capital (Wi.MCC) is 6.30% Wie cerperate qaluation method bo torniete rour anatio. + Yoe nould ditcount the FCFs esing the in your valuation. - The horigon value of elanche inc y cabh flows is - Wote llound your interthesate calcuistions to two decimal ploces.) + The curtent totat firin walue of elanele inc. operations is (Notei bo nof round your interniciater (alculations.) Warthe the to trity corp. wid be 17,232.00 mition. 11,266.94 mithon \$538. 44 mimich. 1). 66.94 initita

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