Question: fin 2 7. What is RONA? Why is it important? What are its two ratio components and what do each mean? 8. What are synergies?

fin 2

7. What is RONA? Why is it important? What are its two ratio components and what do each mean? 8. What are synergies? 9. Why estimate the stand-alone value of the target? 10. Should you use the target or the acquirer's discount rate to calculate the value of the target to the acquirer? Does your answer differ if the acquirer and target are in different industries? What does the estimate assume about the capital structure of the target? What if you are unsure about the target's COC-what else can you do? 11. An unlevered Beta measures business risk, what does a levered beta measure? Why would one calculate an unlevered beta? 12. How do you measure the value of Equity after calculating the enterprise value with DCF

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