What are the contemplated synergies worth, in present value terms? Prepare your own estimate of this value. How large is the value relative to the market capitalization's of the old and new firms? What are the sources of this new value? (Note: equity-market risk premium is assumed to be 6%, long ?term growth rate is assumed to be 2.5%).

This question requires estimates, and projections. i have attached an excel document of the things I've already tried to project, but I don't know how to answer the above question. Could you help me with this please? Please show your work. Open the excel file for help, and let me know if there is anything else you need

Financial Terms (CHF bn) Assets under management Total Assets Market Cap Revenues Ex-UBS SBC 730 437 49.5 13.1 590 360 35.6 13 SBC Net Profits Number of Shares (PAR 20) EPS Price per Share P/E Ratio Total Value Total Shareholders Equity Headcount Cost to Income ratio ROE Funds under Management UBS New Merged UBS 1,326,000,000.00 159,007,018.00 8.34 431.00 51.68 35,578,000,000.00 15,087,000,000.00 1,856,000,000.00 128,750,000.00 14.42 379.50 26.33 49,516,000,000.00 23,325,000,000.00 3,182,000,000.00 214,369,164.00 14.84 396.95 26.74 85,094,000,000.00 38,412,000,000.00 26,833 28,641 55,474 62% 19% 57% 16% 59% 18% 590,000,000,000.00 730,000,000,000.00 1,320,000,000,000.00 Ref: Exhibit 16 & 17 Synergy Value CHF 20- 25B Breakdown Cost Savings (Elimination of duplicate activities) Combined workforce Estimated Workforce Reduction Estimated Workforce Reduction in Switzerland Revenue Growth Capital Redeployment Plan (CHF) Combined Merger Synergy Value (based on $20B) CHF 3.5B per year 11 - 13 B 105,094,000,000.00 After Merger $87,707,655,580 Price paid to SBC: 1.0769 * 79503509* 427.5 = $36,601,408,080 Price of UBS: 1984.7*21300000 + 396.95*22250000 = 51,106,247,500 Combined value of new UBS = $ 87,707,655,580 Expenses: Merger Expenses (CHF) - Charge against 1997 income SBC @40% UBS@60% Source: Exhibits 13 & 14 56,000 14000 7000 10% 7B 2.8B 4.2B Projections (CHF bn) Revenue Cost/Tax Profit Equity ROE 1997 26 20.5 5.5 34 16% 1998 23 18.5 4.5 35 13% 1999 26 19 7 39 18% 2000 28 20 8 43 19% Exhibit 15