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Use the data contained in the case to estimate the postmerger cash flows for 2018 through 2022 assuming that Lafayette General Hospital is acquired by

Use the data contained in the case to estimate the postmerger cash flows for 2018 through 2022

assuming that Lafayette General Hospital is acquired by St. Benedict's Teaching Hospital. You have

very limited data on which to base your forecasts. The key is to make supportable assumptions about

the potential synergies that can be obtained from the merger. Also, any cost savings to St. Benedict's

that result from the merger must be included in the analysis. (Hint: Use embedded interest expense in

your forecast, but do not include any interest to fund the acquisition.)

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