Question: In valuing the synergy described below, determine whether you would use a discount rate equal to , greater than, or less than the target s

In valuing the synergy described below, determine whether you would use a discount rate equal to, greater than, or less than the targets WACC. (Assume the acquirer is in the same segment as the target.)
The French government wants to promote the merger of two companies and guarantees a yearly annuity if the two agree to merge.
Group of answer choices
equal to WACC
greater than WACC
less than WACC

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