Riskfree rate 0.02

Market rate 0.15.

1. IG International believes that Axalta is a takeover target.Use the Supernormal then Constant Growth Model and the information below to find Axalta's value.

Beta 1.10

Sales, Year t $4,482,200

Supernormal g 0.05

Constant g 0.02

Operating income 488,200

Earnings before taxes 330,000

Taxes 77,400

Capital expenditures 112,500

2. Mondelez is on several takeover target lists.Use the Supernormal then Zero Growth Model and the information below to find Mondelez' value.

Beta 1.00

Sales Year t 25,896

Supernormal g 0.08

Operating income 3,506.00

Tax rate 0.30

Capex 1,014.00