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the last 2 choices got cut off for the last question but the choices are 31.13 & 24.90 Zirfy Corp. is considering an ecquisition of
the last 2 choices got cut off for the last question but the choices are 31.13 & 24.90
Zirfy Corp. is considering an ecquisition of Keedsler Motors Co., and estimates that acquiring Keedsler will result in incremental after-tax net cash flows in yeers 13 of $9 million, $13.5 million, and $16.2 million, respectively. After the first three years, the incremental cash flows contributed by the Keedsier acquisition are expected to grow at a constant rate of 3% per year. Ziffy's current beta is 1.60, but its post-merger beta is expected to be 2.08. The risk-free rate is 4.5%, and the market risk premium is 6.60%. Based on this informetion, complete the following table by selecting the appropriate values, (Note: Round your intermedlate calculations to two decimal places.) Keedster Motors Co, has 3 million shares of common stock outstanding. What is the torgest tender offer Zifry corp. should make on eoch of Keedsler Motors Co.'s shares? 537.35: 537.36 Step by Step Solution
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