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bok int rences acquirer wants to estimate its maximum ce at an 8 percent discount rate and a terminal value in year 5 based
bok int rences acquirer wants to estimate its maximum ce at an 8 percent discount rate and a terminal value in year 5 based on the perpetual growth equation with a 4 percem perpetual growth rate. Year 2 3 Free cash flow -940 -470 4 284 5 868 a. Estimate the target's maximum acquisition price. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Maximum acquisition price b. Estimate the target's maximum acquisition price when the discount rate is 7 percent and the perpetual growth rate is 5 percent. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Maximum acquisition price
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