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In early 2011, Amalgamated Fruit Plc was interested in acquiring Dynatech. Inc. a privately-held, electronics company. As a first step in deciding what price to

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In early 2011, Amalgamated Fruit Plc was interested in acquiring Dynatech. Inc. a privately-held, electronics company. As a first step in deciding what price to bid for Dynatech, Amalgamated's finance department has prepared a five-year financial projection projection for the company assuming an acquisition. Use this projection and Dynatech's 2010 actual financial figures to answer the questions below. Estimate Dynatech's free cash flow from 2011 through 2015. Estimate the present value of Dynatech's free cash flow for the year 2011-2015. Amalgamated's WACC is 7.4 percent. Dynatech's WACC is 11 percent, and the average of the two companies' WACCs, weighed by sales, is 7.6 percent. In early 2011, Amalgamated Fruit Plc was interested in acquiring Dynatech. Inc. a privately-held, electronics company. As a first step in deciding what price to bid for Dynatech, Amalgamated's finance department has prepared a five-year financial projection projection for the company assuming an acquisition. Use this projection and Dynatech's 2010 actual financial figures to answer the questions below. Estimate Dynatech's free cash flow from 2011 through 2015. Estimate the present value of Dynatech's free cash flow for the year 2011-2015. Amalgamated's WACC is 7.4 percent. Dynatech's WACC is 11 percent, and the average of the two companies' WACCs, weighed by sales, is 7.6 percent

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