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The Acquisition of Consolidated Rail Corporation CASE!! Questions: Why does CSX want to buy Conrail? Analyze industry economics. Why did CXSs stock price fall at
The Acquisition of Consolidated Rail Corporation CASE!!
Questions:
- Why does CSX want to buy Conrail? Analyze industry economics. Why did CXSs stock price fall at announcement?
- How much is Conrail worth? How do you value the cost savings? Using Multiple valuation (price/earnings multiples, sales multiples, EBITDA multiples, and Market/Book multiples) and DCF valuation methods to calculate value of Conrail).
- Using the following information to calculate asset cost of capital:
Equity beta: Conrail 1.30, CSX- 1.35, Norfolk Southern 1.15
Debt beta: 0.1- for all the companies.
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