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Finally, your management team is also considering the purchase of a smaller competitor as an alternative means of expanding the production capability of the firm.

Finally, your management team is also considering the purchase of a smaller competitor as an alternative means of expanding the production capability of the firm. The data for the Target firm is provided in Appendix 4. Using this data and the appropriate calculations, determine the value of the Target" firms equity shares. This firm is currently trading for $13.50 per share in a very active market. Based on your analysis, what is your recommendation to the management team? You should reference very specific numbers to support your recommendation. Based on your recommendation, who would potentially receive the benefit from the deal and how so?

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