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Milo enterprises is planning to acquire Bournvita enterprises. The deal is expected to generate R0.8 million ,R1.5 million, R1.8 million, R2 Million and R2.4 million
Milo enterprises is planning to acquire Bournvita enterprises. The deal is expected to generate R0.8 million ,R1.5 million, R1.8 million, R2 Million and R2.4 million after tax cash flows to Milo for the first 5 years , inclusive of all synergies. These levered netcash flows are expected to grow perpetually at 6% per annum from the end of the forecast period. what is the value of bournvita to milo if the appropriate discount rate for the cash flows is 20.5%?
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