(megers) extraord existing in the expect ABC Company is considering acquisition of XYZ Ltd. which has 1.5 crores shares outstanding and issued. The market price per share is 400 at present. ABC's average cost of capital is 12%. Available information from XYZ indicates its PROBLEM - 4 expected cash accruals for the next 3 years as follows: Year Cr. 1 250 2 300 400 3 Calculate the range of valuation that ABC has to consider. (PV factors at 12% You for years 1 to 3 respectively: 0.893, 0.797 and 0.712). i. SOLUTION