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 a...

Discount rate Rf beta Erm Rf 6 154 13 6 ...

ABC energy corp is planning a merger with DEB Corp. The projected post-merger BETA of ABC corp.

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 a Market return of 13%, What is the energy is planning merger with DEB corp. using the above 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
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...