Omega Inc. is considering an acquisition of a target whose market capitalization is currently 3 billion dollars.
Fantastic news! We've Found the answer you've been seeking!
Question:
Omega Inc. is considering an acquisition of a target whose market capitalization is currently billion dollars. The acquisition will produce $ million annual aftertax saving of production cost. This cost reduction will happen in three years and to grow at the rate of inflation In addition, the CFO expects that the acquisition will create an aftertax integration cost of $ million. Assume the onetime integration cost will occur in two years. The current discount rate of the acquirer is
what will be The NPV of the synergies associated with this acquisition ?
Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
Posted Date: