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The following represents the targets accounting data you have estimated for the years 2020-2021. Assume that all of these numbers are end-of-year data (i.e. today

The following represents the targets accounting data you have estimated for the years 2020-2021. Assume that all of these numbers are end-of-year data (i.e. today is January 1st, 2020 and the revenues, etc. are at the end of 2020, 2021).
In addition, you have the following information for the target and the acquiring firm.
image text in transcribed
calculate the target firm value
what would be a reasonable offer (i.e. $/share) for the target?
see photo 2 for data
image text in transcribed
The following represents the target's accounting data you have estimated for the years 2020-2021. Assume that all of these numbers are end-of-year data (i.e. today is January 15, 2020 and the revenues, etc. are at the end of 2020, 2021). In addition, you have the following information for the target and the acquiring firm Revesses S100 ST Cost of Goods Sold SJO BOBOSS.ORG Depreciatica 510.000.000 SISTE 58.000,00 S. rest $4.000.000.000.000 Retained Earning 2.000,00 1.000,00 Target Acquiring Cup Structure Doe-70% T-40% Cap Scre De 2016 of Shares Outstanding 4.500,000 Other Information Current Price Share 530 T-honda- . Future Growth Rate 4% M Premium Calculate the target firm value. What would be a reasonable offer (i.e. S/share) for the target 2020 2021 Revenues $100,000,000 $120,000,000 Cost of Goods Sold $30,000,000 $55,000,000 Depreciation $10,000,000 $15,000,000 A&G $8,000,000 $11,000,000 lInterest $4,000,000 $5,000,000 Retained Earnings $2,000,000 $3,000,000 Target Acquiring Firm O. = 1.8 Cap Structure: Debt = 70% Taxes = 40% Taxes = 35% Cap Structure: Debt = 20% # of Shares Outstanding = 4,500,000 Other Information Current Price per Share = $30 T-bond rate = 5% Est. Future Growth Rate = 4% Mkt Risk Premium = 6% The following represents the target's accounting data you have estimated for the years 2020-2021. Assume that all of these numbers are end-of-year data (i.e. today is January 15, 2020 and the revenues, etc. are at the end of 2020, 2021). In addition, you have the following information for the target and the acquiring firm Revesses S100 ST Cost of Goods Sold SJO BOBOSS.ORG Depreciatica 510.000.000 SISTE 58.000,00 S. rest $4.000.000.000.000 Retained Earning 2.000,00 1.000,00 Target Acquiring Cup Structure Doe-70% T-40% Cap Scre De 2016 of Shares Outstanding 4.500,000 Other Information Current Price Share 530 T-honda- . Future Growth Rate 4% M Premium Calculate the target firm value. What would be a reasonable offer (i.e. S/share) for the target 2020 2021 Revenues $100,000,000 $120,000,000 Cost of Goods Sold $30,000,000 $55,000,000 Depreciation $10,000,000 $15,000,000 A&G $8,000,000 $11,000,000 lInterest $4,000,000 $5,000,000 Retained Earnings $2,000,000 $3,000,000 Target Acquiring Firm O. = 1.8 Cap Structure: Debt = 70% Taxes = 40% Taxes = 35% Cap Structure: Debt = 20% # of Shares Outstanding = 4,500,000 Other Information Current Price per Share = $30 T-bond rate = 5% Est. Future Growth Rate = 4% Mkt Risk Premium = 6%

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