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please answer correctly and show step by step workings on excel. thank you Here you have a fist of suggested steps: 1. Put together the
please answer correctly and show step by step workings on excel. thank you
Here you have a fist of suggested steps: 1. Put together the Income Statement for the next 5 years. 2- Calculate the Operating Cash Flow for the next 5 years. 3- Calculate the Cash Flow from Assets or Free Cash flow for the next 5 years. 4. Calculate the cost of equity for CCC. 5. Calculate CCC's WACC, in this case is going to be equal to the cost of equity since CCC does not have any debt. 6. Calculate CCC Serminal Value in Year S. 7. Find the tentative value of cC discounting all the free Cash Flow for the next S years and the Terminal Value in year 5 . 8- Calculate ccc's price per share. 9. Calculate Pampa's post-merger price per share. 10- Calculate Pampa's post-merger beta."* "The key concept is that, barring other market frictions, firm value will increase by the NPV of the project. If a firm pays $100 cash for something that is worth $120, they exchange $100 in assets (cash) for $120 in assets (value of new project), so market value increases by $20. Of course, this assumes no information problems, i.e., investors and managers see the same valuation and probability =1 that the deal will be completed. * If the equity of the newly acquired firm is worth $120 and the old firm is worth say $250, then the equity value of the combined firm will be $120+$250, and it is straightforward to compute the equity weights for estimating the beta of the combined firm Step by Step Solution
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