Question 3 Many acquisitions of private companies are highly levered so as to take advantage of unexploited interest tax shields. Often, as in the case of Air Thread, a schedule of debt repayment is set until a long-term sustainable debt to value ratio (DIV ), often in line with the industry D/V ratio, is attained. What are the implications of this approach when performing a Discounted Cash Flow valuation of these acquisition targets? 18 marks Question 3 Many acquisitions of private companies are highly levered so as to take advantage of unexploited interest tax shields. Often, as in the case of Air Thread, a schedule of debt repayment is set until a long-term sustainable debt to value ratio (DIV ), often in line with the industry D/V ratio, is attained. What are the implications of this approach when performing a Discounted Cash Flow valuation of these acquisition targets? 18 marks