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I have the right answer but do not know how to find the present value of future cash flows, to then calculate the value per
I have the right answer but do not know how to find the present value of future cash flows, to then calculate the value per share. please explain preferably how to do with BA 2 Plus calculator.
Company A is considering an acquisition of Company B, and estimates that acquiring Company B will result in the following incremental cash flows to Company A's stockholders if it does so. Year 1: $1.25 Year 2: $1.45 Year 3: $1.65 Year 4: $1.85 Year 5& beyond: cash flows grow at a constant rate of 6% per year If Company B has 1.5 million shares outstanding, what is the maximum price per share that Company A should offer (to buy) Company B Step by Step Solution
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