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Incorrect Question 20 0 / 6 pts The Martin Co. is considering the acquisition of Ramaswami Inc. Last year Ramaswami generated cash flows of
Incorrect Question 20 0 / 6 pts The Martin Co. is considering the acquisition of Ramaswami Inc. Last year Ramaswami generated cash flows of $35,000,000. The managers of The Martin Co. feel that 9.00% is a reasonable discount rate for the cash flows of Ramaswami and that the cash flows of the firm will probably grow at 2.50% into the future. The Martin Co. managers also think that the union with Ramaswami will generate perpetual annual synergies of $4,800,000. Based on these assumptions, what is a reasonable price to pay for Ramaswami? $865,793,651 $527,000,000 $606,538,462 $714,480,519 $605,256,410
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