I only need the answers to part D and E!!!! Please use excel formulas with links to the provided information above.

Wansley Portal Inc., a large Internet service provider, is evaluating the possible acquisition of Alabama Connections Company (ACC), a regional Internet service provider. Wansley's analysts project the following post merger data for ACC (in thousands of dollars): If the acquisition is made, it will occur on January 1,2023 . All cash flows shown in the income statements are assumed to occur at the end of the year. ACC currently has a capital structure of 30 percent debt, which costs 8 percent, but Wansley would increase that to 40 percent debt, costing 7 percent if the acquisition were made. ACC, if independent, would pay taxes at 18 percent, but its income would be taxed at 21 percent if it were consolidated. ACC's current market-determined beta is 1.40 . The cost of goods sold is expected to be 65 percent of sales, but it could vary somewhat. Gross investment in operating assets is expected to be equal to depreciation-replacing worn out equipment, so net investment in operating assets will be zero. The risk-free rate is 7 percent, and the market risk premium is 6.5 percent. Wansley currently has $400,000 in debt outstanding. ACC's management estimates the firms equity is currently worth $750,000 (pre-merger). Use the compressed APV model to answer the following questions. The unlevered cost of equity should be used to discount the FCFs, tax shields and horizon value. Step 1: Find the levered cost of equity at old capital structure. Step 1: Find the levered cost of equity at old capital structure. rL=16.10% Step 2: Find the unlevered cost of equity. ru=13.67%Usethisvalueyoudonotneedtocalculate To calculate the value of the tax shields add the horizon value of the tax shields to the 2023 tax shield to get the total tax shield cash flow in 2023. In the other years the total TS cash flow is just the annual TS Then find the NPV of this stream of tax shields at the unlevered cost of equity. To calculate the unlevered value of operations, add the unlevered horizon value to the free cash flow in 2023 to get the total unlevered cash flow in 2023. In the other years the unlevered cash flow is just the annual free cash flow. The unlevered value of operations is the NPV of the unlevered cash flows at the unlevered cost of equity. The value of operations is the value of the interest tax shields plus the unlevered value of operations \begin{tabular}{|l|l|c|c|c|} \multicolumn{1}{l|}{} & \multicolumn{1}{c|}{VTS} & \multicolumn{1}{c|}{+} & Vunlevered \\ Vops & = & $248.98 & + & $1,359.24 \\ \hline Vops & = & & \\ \hline & $1,608.21 & & \\ \hline & & & \\ \hline \end{tabular} To find the value of ACC to Wansley's shareholders take the value of operations, add in any non-operating assets (there are non for ACC) and subtract off the debt. d. Calculate the gain (per share) to ACC and Wansley at each share price below. Graph the gains to identify the nenntiation ranne Inranh the resultel in nninte Wansley Portal Inc., a large Internet service provider, is evaluating the possible acquisition of Alabama Connections Company (ACC), a regional Internet service provider. Wansley's analysts project the following post merger data for ACC (in thousands of dollars): If the acquisition is made, it will occur on January 1,2023 . All cash flows shown in the income statements are assumed to occur at the end of the year. ACC currently has a capital structure of 30 percent debt, which costs 8 percent, but Wansley would increase that to 40 percent debt, costing 7 percent if the acquisition were made. ACC, if independent, would pay taxes at 18 percent, but its income would be taxed at 21 percent if it were consolidated. ACC's current market-determined beta is 1.40 . The cost of goods sold is expected to be 65 percent of sales, but it could vary somewhat. Gross investment in operating assets is expected to be equal to depreciation-replacing worn out equipment, so net investment in operating assets will be zero. The risk-free rate is 7 percent, and the market risk premium is 6.5 percent. Wansley currently has $400,000 in debt outstanding. ACC's management estimates the firms equity is currently worth $750,000 (pre-merger). Use the compressed APV model to answer the following questions. The unlevered cost of equity should be used to discount the FCFs, tax shields and horizon value. Step 1: Find the levered cost of equity at old capital structure. Step 1: Find the levered cost of equity at old capital structure. rL=16.10% Step 2: Find the unlevered cost of equity. ru=13.67%Usethisvalueyoudonotneedtocalculate To calculate the value of the tax shields add the horizon value of the tax shields to the 2023 tax shield to get the total tax shield cash flow in 2023. In the other years the total TS cash flow is just the annual TS Then find the NPV of this stream of tax shields at the unlevered cost of equity. To calculate the unlevered value of operations, add the unlevered horizon value to the free cash flow in 2023 to get the total unlevered cash flow in 2023. In the other years the unlevered cash flow is just the annual free cash flow. The unlevered value of operations is the NPV of the unlevered cash flows at the unlevered cost of equity. The value of operations is the value of the interest tax shields plus the unlevered value of operations \begin{tabular}{|l|l|c|c|c|} \multicolumn{1}{l|}{} & \multicolumn{1}{c|}{VTS} & \multicolumn{1}{c|}{+} & Vunlevered \\ Vops & = & $248.98 & + & $1,359.24 \\ \hline Vops & = & & \\ \hline & $1,608.21 & & \\ \hline & & & \\ \hline \end{tabular} To find the value of ACC to Wansley's shareholders take the value of operations, add in any non-operating assets (there are non for ACC) and subtract off the debt. d. Calculate the gain (per share) to ACC and Wansley at each share price below. Graph the gains to identify the nenntiation ranne Inranh the resultel in nninte