Evaluating the market and AdTec, you assume that AdTec is going to produce the following cash-flows in
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Question:
Evaluating the market and AdTec, you assume that AdTec is going to produce the following cash-flows in the coming years (figures in mn€):
*Ref) the risk-free rate is 1.08%
*Ref) acquisition price of 450mn EUR
Question) Given the fact that the current asset beta of A company is 0.9, what are impacts of the acquisition on the systematic risk of Company A if the company A plans on acquiring AdTec?
What about the unsystematic risk that the new company is exposed to?
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