Question
We know that the synergy from a merger is 100 million (no other info given, no growth rate no years) We know the tax rate
We know that the synergy from a merger is 100 million (no other info given, no growth rate no years)
We know the tax rate is 35%, a list of multiples of the acquiring company (see below), 10 year bond yields of 4.45%, we may be able to calculate the beta of comparable firms and we have a list of SP500 so market risk.
How to calculate the value of the synergy? the value created for the acquiring company
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International financial management
Authors: Jeff Madura
12th edition
1133947832, 978-1305195011, 978-1133947837
