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You are considering the acquisition of Firm C. Proforma financial information for Firm C is below; the appropriate discount rate for Firm C is 15%.
You are considering the acquisition of Firm C. Proforma financial information for Firm C is below; the appropriate discount rate for Firm C is 15%. After year 20, you will assume that the cash flow from year 20 will then grow at 2% per year forever. The tax rate is 30%. Increases in Working Capital is 10% of the change in sales; invested the period before the sales increase. Principal Payment 0 0 0 500 0 Using a DCF approach, what is the value for Firm C? You will assume C's debt if you acquire C. You are considering the acquisition of Firm C. Proforma financial information for Firm C is below; the appropriate discount rate for Firm C is 15%. After year 20, you will assume that the cash flow from year 20 will then grow at 2% per year forever. The tax rate is 30%. Increases in Working Capital is 10% of the change in sales; invested the period before the sales increase. Principal Payment 0 0 0 500 0 Using a DCF approach, what is the value for Firm C? You will assume C's debt if you acquire C
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