Question
RiverRocks (whose WACC is 11.4%) is considering an acquisition of Raft Adventures (whose WACC is 15.1%). The purchase will cost $104.6 million and will generate
RiverRocks (whose WACC is 11.4%) is considering an acquisition of Raft Adventures (whose WACC is 15.1%). The purchase will cost $104.6 million and will generate cash flows that start at $14.2 million in one year and then grow at 4.2% per year forever. What is the NPV of the acquisition?
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Principles Of Quantitative Equity Investing
Authors: Sugata Ray
1st Edition
0134878450, 978-0134878454
