Jomoro Ltd would like to acquire Madura Ltd. Jomoro has made the foliowing estimates for Madura Ltd. 1. An estimated enterprise value of $420 million 2. Long-term debt whose market value is $32 million 3. Estimated Present value of finance lease recorded as an operating lease $18 millon 4. Excess cash balances $9 million 5. Estimated present value of currently unused licenses of $8 million 6. Unrecorded patents are estimated to generate net cash flows of $600.000 in each of the next 5 years. The estimated risk associated with these cash flows is 10%. 7. Estimated Present value of future litigation costs of $4 million Shareholders of Madura L.td are demanding an acquisition premium of 35%. Rexuired: 1. How much should Jomoro pay to acquire Madura? [10 marks] Jomoro Ltd would like to acquire Madura Ltd. Jomoro has made the foliowing estimates for Madura Ltd. 1. An estimated enterprise value of $420 million 2. Long-term debt whose market value is $32 million 3. Estimated Present value of finance lease recorded as an operating lease $18 millon 4. Excess cash balances $9 million 5. Estimated present value of currently unused licenses of $8 million 6. Unrecorded patents are estimated to generate net cash flows of $600.000 in each of the next 5 years. The estimated risk associated with these cash flows is 10%. 7. Estimated Present value of future litigation costs of $4 million Shareholders of Madura L.td are demanding an acquisition premium of 35%. Rexuired: 1. How much should Jomoro pay to acquire Madura? [10 marks]