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You have been asked to value the synergy in a merger by your boss, who also happens to be an avid believer in Economic Value
You have been asked to value the synergy in a merger by your boss, who also happens to be an avid believer in Economic Value Added EVA As a result, you are given the following information on the two firms:
G & P is a diversified consumer product company with $ billion in capital invested, a return on capital of and a cost of capital of The firm is assumed to be in stable growth, and the EVA is expected to grow a year in perpetuity.
BandAdd is a smaller company that produces only perfumes. It has $ million in capital invested, earning a return on capital of with a cost of capital of This firm is also in stable growth, and the EVA is expected to grow a year in perpetuity.
Using the above information, answer the following fill in any and every blank spot also include all answers and calculations include the formula used to get the answer
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