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Topic: Summary Practice Q5 Shakermaker plc is considering taking over one of its main competitors, Oasis plc, in a deal that will cost 595m. The

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Topic: Summary Practice Q5 Shakermaker plc is considering taking over one of its main competitors, Oasis plc, in a deal that will cost 595m. The company is planning to finance this acquisition through loan capital. Acquisitions director, Alan McGee, has estimated the following net cashflows from the acquisition for the next 5 years. Year 1 2 Cashflow | 220 180 165 145 140 3 4 5 Figure 3 - estimated net cash flows in Em Activity: Recalculate the gearing if Shakermaker plc purchase Oasis plc (using data from question Q1 & 05) Topic: Summary Practice Q7 In addition, the finance director, Liam Diggsy, expects a rate of return of 10% on an investment of that size. Activity: Calculate the ARR and advise whether the investment meets with this criteria (using the data in question 5) sono t Your workings: Q8 Activity: Using the discount factors in Figure 4 and the data in nurt Topic: Summary Practice Q5 Shakermaker plc is considering taking over one of its main competitors, Oasis plc, in a deal that will cost 595m. The company is planning to finance this acquisition through loan capital. Acquisitions director, Alan McGee, has estimated the following net cashflows from the acquisition for the next 5 years. Year 1 2 Cashflow | 220 180 165 145 140 3 4 5 Figure 3 - estimated net cash flows in Em Activity: Recalculate the gearing if Shakermaker plc purchase Oasis plc (using data from question Q1 & 05) Topic: Summary Practice Q7 In addition, the finance director, Liam Diggsy, expects a rate of return of 10% on an investment of that size. Activity: Calculate the ARR and advise whether the investment meets with this criteria (using the data in question 5) sono t Your workings: Q8 Activity: Using the discount factors in Figure 4 and the data in nurt

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