Question: please answer all QUESTION B Q8 to 016 are based on the following information You are leading a team on a M&A deal Suddenly your


QUESTION B Q8 to 016 are based on the following information You are leading a team on a M&A deal Suddenly your analyst has disappeared and you have the following unfinished spreadsheet The acquirer and the target are assumed to have zes growth a rate 40%. Now it is up to you to finish this job Acquirer Target Combined Sales Operating Expenses Annual cost savings EBIT EBIT(1-1) Depreciation Gross Plant & Equipment Change in Working Capital Free Cash Flow to Fins Discount a Fem Vale Long term det Eaulyval 400 200 200 120 40 30 10 120 600% 1500 400 100 60 40 24 30 FREE 6 10 95 211.111 50 1100 161 531 Please in the numbers What 217 500 200 20 217 m m m m 227 S m AND 147 8. Please fill in the numbers. What is ?1? QUESTION 9 9. What is ?2? QUESTION 10 10. What is ?3? QUESTION 11 11. What is 24? QUESTION 12 12. What is the synergy of this merger? QUESTION 13 13. What is minimum price to offer? QUESTION 14 14. Suppose you decide to share 30% of the synergy to the target shareholders, what is your initial offer? QUESTION 15 15. What is the maximum price you can offer? QUESTION 16 16. If the tax rate drops from 40% to 22% and everyting else stays the same, the synergy from this merger will increase True O False
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