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answer in excel pleas eiwth formulas Question#2: (50 PTS) Suppose ABC Corp is considering the acquisition of Hatfield Medical Supplies. ABC Corp M&A team has
answer in excel pleas eiwth formulas
Question\#2: (50 PTS) Suppose ABC Corp is considering the acquisition of Hatfield Medical Supplies. ABC Corp M\&A team has gathered the following data regarding Hatfield, with all dollars reported in millions: (1) most recent sales of $2,000; (2) most recent total net operating capital, OpCap =$1,120; (3) most recent operating profitability ratio, OP= NOPAT / Sales =12.5%; and (4) most recent capital requirement ratio, CR=OpCap/Sales =50%. They estimate that the growth rate in sales from Year 0 to Year 1 will be 10%, from Year 1 to Year 2 will be 8%, from Year 2 to Year 3 will be 5%, and from Year 3 to Year 4 will be 5%. They also estimate that the long-term growth rate beyond Year 4 will be 5%. ABC Corp executives think that their investors (creditors and equity investors) would require 10% return on their investment. A) Estimate the free cash flows of Hatfield in the next four years. B) Estimate the value of operating assets of Hatfield Step by Step Solution
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