M&A Assignment $($MGT $4350)15$ Points.

These questions are designed to develop students$$ ability to make strategic decisions. Students will have opportunities to integrate knowledge about corporate$-$level strategy with analytical skills learned from finance courses.

$1-3.$ Free Cash Flow; WACC; NPV $(3$ questions$)$

$2019$

$2020$

$2021$

$2022$

$2023$

$2024$

$2025$

M&A

$1$

$2$

Revenue

$142343$

$152235$

$106364$

$144978$

$186152$

$205309$

$213635$

EBIT $+$ After Tax

$4522$

$4225$

$2214$

$3214$

$3621$

$4314$

$5835$

Capital Expenditure

$1577$

$1823$

$1088$

$1657$

$2606$

$2395$

$3123$

Dep. & Amortization

$437$

$575$

$622$

$1026$

$1066$

$1045$

$1087$

Net Working Capital Change

$0$

$-4808$

$6090$

$1539$

$903$

$1689$

$1758$

Free Cash Flow

$3382$

$7785$

$-4342$

$1044$

$1178$

Other information

Let assume that today is Dec $31,2023.$

Your Investment in Acquisition $=$ $$2,000$ in $2023$

Capital Structure $=$ $$1,200$ from Bank; $$800$ from Investors

Interest Rate $=5\%$

Cost of Equity $=10\%$

Corporate Tax Rate $=35\%$