Your management team is deciding whether to acquire Green Corporation, an entity that sells a product...

 

Transcribed Image Text:

Your management team is deciding whether to acquire Green Corporation, an entity that sells a product that complementary to your own. Its offer price is P7,500,000. You were able to gather the following information: Average annual Weighted average cost of capital free cashflows Own P 2,250,000 18% Green Corporation 1,500,000 20% Combined 4,150,000 17% How much is the value of synergy based on the information gathered? Your management team is deciding whether to acquire Green Corporation, an entity that sells a product that complementary to your own. Its offer price is P7,500,000. You were able to gather the following information: Average annual Weighted average cost of capital free cashflows Own P 2,250,000 18% Green Corporation 1,500,000 20% Combined 4,150,000 17% How much is the value of synergy based on the information gathered?

Answer rating: 100% (QA)

Particulars Calculation Amount A Value of Ow... View the full answer