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.

calculate appropriate cash flows

calculate appropriate discount rate for the acquiring firm based on the value of the target

why is this rate so high?

see the second photo for data.

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 $4.000.000.000.000 Retained Earning 2.000,00 1.000,00 Acquiring Firm Cup Structure De Cap Store Dele 2016 of Share Outstanding 4.500,000 Other Information Current Price per Share 510 T-band me Mat Risk Premium Calculate the appropriate cashflows. Calculate the appropriate discount rate for the acquiring firm based on the value of the target. . Why is this rate so high? 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 JA&G $8,000,000 $11,000,000 Interest $4,000,000 $5,000,000 Retained Earnings $2,000,000 $3,000,000 0. = 1.8 Target Acquiring Firm 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 $4.000.000.000.000 Retained Earning 2.000,00 1.000,00 Acquiring Firm Cup Structure De Cap Store Dele 2016 of Share Outstanding 4.500,000 Other Information Current Price per Share 510 T-band me Mat Risk Premium Calculate the appropriate cashflows. Calculate the appropriate discount rate for the acquiring firm based on the value of the target. . Why is this rate so high? 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 JA&G $8,000,000 $11,000,000 Interest $4,000,000 $5,000,000 Retained Earnings $2,000,000 $3,000,000 0. = 1.8 Target Acquiring Firm 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%