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( 9 points) The following represents the target's accounting data you have estimated for the years 2018-2019. Assume that all of these numbers are end-of-year
( 9 points) The following represents the target's accounting data you have estimated for the years 2018-2019. Assume that all of these numbers are end-of-year data (i.e. today is January 1st, 2018 and the revenues, etc. are at the end of 2018, 2019). In addition, you have the following information for the target and the acquiring firm. (1) Calculate the appropriate cash flows. 2. Calculate the appropriate discount rate for the acquiring firm based on the value of the target. 3. Calculate the target firm value. What would be a reasonable offer (i.e. $/ share) for the target. ( 9 points) The following represents the target's accounting data you have estimated for the years 2018-2019. Assume that all of these numbers are end-of-year data (i.e. today is January 1st, 2018 and the revenues, etc. are at the end of 2018, 2019). In addition, you have the following information for the target and the acquiring firm. (1) Calculate the appropriate cash flows. 2. Calculate the appropriate discount rate for the acquiring firm based on the value of the target. 3. Calculate the target firm value. What would be a reasonable offer (i.e. $/ share) for the target
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