Chapter 26 The Birdie Golf-Hybrid Golf Merger input Area. Cash offor 5185000,000 Sales Production costs Oher expenses Dopreciafion EBIT Interest Taxable income Taxbe (21%) Natincome Additons bo retained eamings Dividends trom Hybrid today 5tock price of acquirer Shares outatanding in acquirer Shares outstanding in target Borrowing rate Hybrid WACC Hybrid cost of equity Terminal value of Hyerid in five years 5235.000.000 Taxrath 21% Outpur Area: Acquisition of Hybrid Dividends from Hybrid Output Area. Acquisition of Hybrid Dividends from Hybrid Terminal value of company Tobal Presont values Acquisition of Hybrid Dividends from Hybrd Terminal value of company Total 1) NPV 2) Highest price to offit 5185,000,000.00 Price per share offered Highest share price to offer. 3) Now share price 5 A7 00 Exchange ratio 4) Highost exchange raso