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Acquirer Target Combined Sales 1000 300 ?11? Extra revenue 50 Operating Expenses 400 120 520 cost savings 40 EBIT ?1? ?6? ?12? EBIT(1 t) (Note:

Acquirer Target Combined
Sales 1000 300 ?11?
Extra revenue 50
Operating Expenses 400 120 520
cost savings 40
EBIT ?1? ?6? ?12?
EBIT(1 t) (Note: t=40%) ?2? ?7? ?13?
Depreciation 100 30 130
Gross Plant & Equipment 40 20 60
Change in Working Capital 10 10 20
Free Cash Flow to Firm ?3? ?8? ?14?
Discount rate 8.00% 10% 8.00%
Firm Value ?4? ?9? ?15?
Long term debt 3000 200 3200
Equity value ?5? ?10? ?16?
Synergy ?17?

Based on this table, please fill in the missing numbers.

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