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The Martin Co . is considering the acquisition of Ramaswami Inc. Last year Ramaswami generated cash flows of $ 3 5 , 0 0 0
The Martin Co is considering the acquisition of Ramaswami Inc. Last year
Ramaswami generated cash flows of $ The managers of The
Martin Co feel that is a reasonable discount rate for the cash flows of
Ramaswami and that the cash flows of the firm will probably grow at
into the future. The Martin Co managers also think that the union with
Ramaswami will generate perpetual annual synergies of $ Based on
these assumptions, what is a reasonable price to pay for Ramaswami?
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