Question: ABC energy corp is planning a merger with DEB Corp. The projected post-merger BETA of ABC corp. 1.54 assuming a risk-free rate of 6% and

ABC energy corp is planning a merger with DEB Corp. The projected post-merger BETA of ABC corp. 1.54 assuming a risk-free rate of 6% and a Market return of 13%, What is the discount rate?
ABC energy is planning merger with DEB corp. using the above discount rate what would the merger be valued at? (use answer from above)
Pro-forma income statement-ABC/DEB merger
2005 2006 2007 2008 2009
$6.4 $8.8 $9.8 $10.2 $161

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