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The following table shows the projected free cash flows of an acquisition target. The potential acquirer wants to estimate its maximum acquisition price at an
The following table shows the projected free cash flows of an acquisition target. The potential acquirer wants to estimate its maximum acquisition price at an 8 percent discount rate and a terminal value in year S based on the perpetual growth equation with a 4 percent perpetual growth rate Year Free cash flow 4 2114 1940-470 8618 a. Estimate the target's maximum acquisition price. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Maxi cuisition price . Estimate the target's maximum acquisition price when the discount rates 7 percent and the perpetual growth rate is 5 percent (Do not round intermediate calculations. Round your answer to the necrest whole dollar amount.) Maximum ou since
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