Question: Can you solve this in excel? Q: You have the opportunity to acquire a corrVany in the ICT sector With the following forecast for the

Can you solve this in excel?
Q: You have the opportunity to acquire a corrVany in the ICT

Q: You have the opportunity to acquire a corrVany in the ICT sector With the following forecast for the before interest, tax, depreciation and amortization (EBITDA): End of year EBITDA (million IJSD) 20 13 13 13 2024 2025 026 13 14 14 14 The acquisition value of this company will be discussed below. For tax purposes, the acquisition costs will be depreciated with 20 % annually according to the declining balance method. Net income is subject to taxation with a tax rate of 30 It is expected that the ICT company will be sold in the end of 2026. Assume that the sales value corresponds to the book value. The acquisition of the firm today (beginning of 2020) will be equity-financed with at least 50 0/0. The required return On equity is assumed to be 14 Furthermore. your bank offers you to use any combination of the following loans: Constant amortization mortgage (CAM): interest rate of 6 maturity 15 years, maximum USD 30 million. Constant payment mortgage (CPM): interest rate Of 6 0/0, maturity IS years. maximum USD 30 million. Credit line: interest rate of 8 %, maximum USD 5 million. Excessive cash flow will be deposited on a savings account with an interest rate of 2.5 %. (a) Assume acquisition costs Of I-JSD 55 millim. Optimize financing and determine your future wealth in the end of 2026. Should you proceed with the acquisition ? (b) What is the highest price that you Will pay for the firm it you assume the financial structure Obtained in (c) What is the hhest price that you will pay if financing is simultaneously optimized at this highest price? (d) Assume that the company can be sold for USD 20 million in the end of 2026. Again, optimize financing and find out if the acquisition at USD 55 million will be favorable or not Please help me implement this in excel use the solver.

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