Download the following excel file: Merger Model Evaluation - Question.xlsx 17 The implied enterprise value of Snap Inc., calculated using the assumptions and acquisition premium provided, is: $91,669 $92,165 $92,661 $30,498 Download the following excel file: Merger Model Evaluation - Question.xlsx 18 The expected pro-forma share price of Amazon is expected to be: $4,564.39 $3,099.40 OOOO $44.29 $3,143.69 Download the following excel file: Merger Model Evaluation - Question.xlsx 19 The pro-forma enterprise value of Amazon Inc. is expected to be: $1,596,685 $1,672,993 $76,308 $1,769,316 Download the following excel file: Merger Model Evaluation - Question.xlsx 20 Pro-forma FY+1 EPS for Amazon Inc. is expected to be: $130.33 $45.71 $50.00 $36.77 Download the following excel file: Merger Model Evaluation - Question.xlsx 21 The effect of the transaction on FY + 1 EPS for Amazon Inc. is as follows: Accretive by 19.57% Dilutive by 3.28% Dilutive by 19.57% Accretive by 3.28% Download the following excel file: Merger Model Evaluation - Question.xlsx 22 Pro-forma cash flow per share for Amazon Inc. is expected to be: $14.44 $134.75 $130.33 $36.77 Download the following excel file: Merger Model Evaluation - Question.xlsx 23 The effect of the transaction on FY + 1 CFPS for Amazon Inc. is as follows: Accretive by 19.57% Dilutive by 19.57% Accretive by 3.28% Dilutive by 3.28% Download the following excel file: Merger Model Evaluation - Question.xlsx 24 Which of the following item is typically not included in a Public Information Book (PIB)? Discounted cash flow model Recent press releases OOOO Industry reports Equity research reports Download the following excel file: Merger Model Evaluation - Question.xlsx 25 Which of the following is not a key component of the merger model we walked through in the course? Creating detailed forecasts for both companies Determining and calculating items related to the acquisition structure An accretion/dilution and sensitivity analysis Gathering publicly available comparable company information 2 Acquisition Assumptions LONO Acquisition of Snap by Amazon Acquisition Structure Assumptions Acquisition Premium Equity Issuance Discount (to Current Price) 20% 5% % Debt Financing % Equity Financing 20% 80% Acquirer and Target Assumptions 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Share Price ($/sh.) Fully Diluted Shares Outstanding (MM) Net Debt FY + 1 Normalized Net Earnings FY + 1 Normalized Cash Flow Amazon Acquirer $3,099.40 518 $66,884 $23,688 $69,825 Snap Target $44.29 1,734 -$496 $581 $334 Pro Forma Adjustment FY + 1 Normalized Net Earnings FY + 1 Normalized Cash Flow Pro-Forma Net Debt $3,134 $642 $85,595