Cycle Mania is interested in buying a competitor company, Bikes Bonanza. The information on Bikes Bonanza made available to Cycle Mania is as follows: Additional information: - Bikes Bonanza has a WACC of 12%. The company is subject to a tax rate of 28%. annually by 8%. - The company conservatively expects all revenues, costs and expenses to grow annually by 8%. - In the current year, Cycle Mania will need to spend R4 000000 on management of the takeover. - Cycle Mania has negotiated to pay R80 million for Bikes Bonanza. Required: Using the residual income brand-valuation approach, calculate the value of Bikes Bonanza and advise Cycle Mania whether the acquisition is worthwhile. Answer instructions: Show all calculations