Goodyear Tire & Rubber: M&A Synergies

$3.$ What is the stand$-$alone value per share of Cooper based on a DCF model with a growing perpetuity terminal value? Determine the implied terminal value $($EV$)/$earnings before interest, taxes, depreciation, and amortization $($EBITDA$)$ multiple. Create a two$-$way Excel data table that varies the weighted average cost of capital $($WACC$)$ and terminal growth rate.

$4.$ What is the value per share of Cooper in your DCF model if $100$ per cent of the synergies are realized? Create some scenarios by making two$-$way data tables by varying the per cent of realized synergies.

EXHIBIT $5$: COOPER TIRE & RUBBER COMPANY INCOME STATEMENTS $2018-2020($IN US$ THOUSANDS$)$

$\backslash$table$[[,2018,2019,2020],[$Net sales,$2,808,062,2,752,639,2,521,074],[$Cost of products sold,$2,217,608,2,171,295,1,874,413],[$Gross profit,$590,454,581,344,646,661],[$Selling$,$ general and administrative expense,$244,221,250,017,244,529],[$EBITDA$,346,233,331,327,402,132],[$Depreciation$,147,161,148,054,158,847],[$EBIT$,199,072,183,273,243,285],[$Net Interest expense,$21,965,21,731,19,138],[$Restructuring expense,$0,8,818,12,404],[$Other pension and benefit expense,$27,806,41,567,25,419],[$Non$-$operating income $($expense$),-1,416,-1,485,4,579],[$Goodwill impairment charge,$33,827,0,0],[$Income before income taxes,$114,058,109,672,190,903],[$Income tax provision,$33,495,11,355,46,999],[$Net income,$80,563,98,317,143,904]]$ EXHIBIT $4$: THE GOODYEAR TIRE & RUBBER COMPANY BALANCE SHEETS $2019-2020$

$($IN US$ MILLIONS$)$ EXHIBIT $3$: THE GOODYEAR TIRE & RUBBER COMPANY INCOME STATEMENTS $2018-2020($IN US$ MILLIONS$)$

$\backslash$table$[[,2018,2019,2020],[$Net Sales,$15,475,14,745,12,321],[$Cost of Goods Sold,$11,183,10,807,9,478],[$Selling$,$ Administrative and General Expense,$2,312,2,323,2,192],[$EBITDA$,1,980,1,615,651],[$Depreciation$,778,795,859],[$EBIT$,1,202,820,-208],[$Interest Expense,$321,340,324],[$Other $($Income$)$ Expense,$-174,98,119],[$Goodwill and Other Asset Impairments,$0,0,330],[$Rationalizations$,44,205,159],[$Income $($Loss$)$ before Income Taxes,$1,011,177,-1,140],[$United States and Foreign Tax Expense,$303,474,110],[$Net Income $($Loss$),708,-297,-1,250]]$