If your mompany prooeed with the acefuisilion exercise CADEURY above at N15 and you acquire 850,000,000 shares of the compary, prepare a cash flow analysis bassed an the following gscumsition: - The acquisition will be funded through borrowing from bank at an interest rate of 8% per annum. - The share price is expected to perform based on the projected profit for the next five years as follows: - The Price Esrring ratio (PER) is expected to stay constant - Share price will be determined by: Share price = EPS X PER - Cadbury is expected to pay dividend on the shareholders at 6% per annum. - Discount factor will be at the costs of fund - which is 8% per annum - The compsny plan: - To sell 10% of the share after year 3 - To sell another 10% at the end of year 5 - The rest of the shares will be kept as long term investmen? Reguived : 1. Prepare a projected cashfllow statement showing: 1. Cash outflow from investment 2. Cash inflow from the sales of investment 3. Annual cash inflow from dividend ( Q marks) 2. Calculated the present value of the cash flow (5. marks) 3. Determine the Net present value of the garbbilow (3. marks) 4. Based on the calculation determine whether the acquisition of the company is visble. (3. marks)