Question
Suppose your firm plans on acquiring a target firm. After the acquisition, your firm envisions making many changes that will reduce the risk (beta) of
Suppose your firm plans on acquiring a target firm. After the acquisition, your firm envisions making many changes that will reduce the risk (beta) of the target. Should you use the current WACC to value the target, or the post-acquisition WACC which will likely be much lower, and result in a higher value?
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Unlimited Business Financing
Authors: Trent Lee, Dr Chad Lee
1st Edition
1934275050, 9781934275054
