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pls answer the immediately thanks Suppose the following free cash flows are expected from a prospective acquisition: Average for years 1-5 4000 6-10 3600 11-15
pls answer the immediately thanks
Suppose the following free cash flows are expected from a prospective acquisition: Average for years 1-5 4000 6-10 3600 11-15 2800 16-20 1600 21-25 400 Annual after- tax operating cash flows from acquisition Net investment 1200 600 0 0 2800 1600 400 Cash flow after taxes Cost of capital, acquiring firm: 10% Cost of capital, acquiree firm: 12.75% 1. The appropriate discount rate to use % 2. The present value of the expected free cash flows would be (2 decimals) Suppose the following free cash flows are expected from a prospective acquisition: Average for years 1-5 4000 6-10 3600 11-15 2800 16-20 1600 21-25 400 Annual after- tax operating cash flows from acquisition Net investment 1200 600 0 0 2800 1600 400 Cash flow after taxes Cost of capital, acquiring firm: 10% Cost of capital, acquiree firm: 12.75% 1. The appropriate discount rate to use % 2. The present value of the expected free cash flows would be (2 decimals)
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