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How would you interpret the following synergy worksheet? Bidder Target A+B: No synergy A+B (Synergy) Free Cashflow to Equity $ 162,687.23 $ 765.68 $ 163,452.91
How would you interpret the following synergy worksheet?
| Bidder | Target | A+B: No synergy | A+B (Synergy) | |||||
| Free Cashflow to Equity | $ 162,687.23 | $ 765.68 | $ 163,452.91 | $ 163,452.91 | ||||
| Growth rate for first 5 years | 5% | 5% | 5.00% | 20.00% | ||||
| Growth rate after five years | 6% | 5% | 6.00% | 7.00% | ||||
| Beta | 952.43 | 1.90 | 303.31 | 303.31 | Weighted by present values of A and B | |||
| Req. rate of return | 5244.37% | 16.45% | 1674.20% | 1674.20% | ||||
| Riskfree Rate | 6.00% | |||||||
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Public Finance
Authors: Harvey S Rosen
6th Edition
0072374055, 978-0072374056
