Question: Please answer all questions. Use Warren Buffett case study of berkshire hathaway's purchase of geico shares. QUESTION: What is the IRR of Berkshire Hathaway's Geico

Please answer all questions. Use Warren Buffett case study of berkshire hathaway's purchase of geico shares. QUESTION: What is the IRR of Berkshire Hathaway's Geico holdings at the time of the Announcement?
(Hint 1: Use the Total Market Value of Gieco Shares held by Berkshire Hathaway at the time
of Announcement as part of the Terminal Value)
(Hint 2: Instead of using whole dollar amounts for Total Dividends, Berkshire's Initial and
Terminal CF, and Total CF, cite them in millions of dollars i.e., $1,000,000 is stated as $1.00) VARIBALES NEEDED TO ANALYZE THE CASE
Berkshire Hathaway Price per Share before the Announcement
Berkshire Hathaway Price per Share after the Announcement
Per Share Gain in Berkshire Hathaway after the Announcement
Berkshire Hathaway Shares Outstanding
Total Market Value of the Gain in Berkshire Hathaway
(Note: This is not the total market value of Berkshire Hathaway after the Announcement)
Geico Shares held by Berkshire Hathaway
Net Gain in Value of Berkshire's Geico Holdings at the $70 offer
(Hint: 6 x (13-12))
Total Market Value of Geico Shares held by Berkshire Hathaway at time of Announcement
What did Berkshire Hathaway pay for Geico Shares in 1976?
(Note: Assumes they were all purchased at the same time)
Geico Shares publicly held
Geico Share price before the announcement
Berkshire Hathaway price offered for Geico (per share)
After the announcement, what Intrinsic Value did the Market place on Geico Stock?
(Hint: Intrinsic Value Formula is: 5=7+(11 x (X -13)), where you have to solve for X since X is the Intrinsic Value)
Applying the IRR as the future growth rate, what might a share of Geico stock be worth in five years after the Berkshire acquisition?
 Please answer all questions. Use Warren Buffett case study of berkshire

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