Question: PLEASE NEED HELP ASAP mergers and acquisition (M&A) : please i need it ASAP Buyer wants to acquire company Co. The following projections in millions

PLEASE NEED HELP ASAP

Buyer wants to acquire company Co. The following projections in millions are used to value Co: Year 1 200 100 100 Revenues Costs EBIT Change in NWC Year 2 210 105 105 Year 3 220 110 Year 4 230 115 115 Year 5 240 120 120 110 Also: Co is financed 80% with equity (E) and 20% with debt (D). The interest rate on the debt is 8%. The tax rate is 40% Appropriate beta of Co is assumed to be 0.8 Capital expenditure: 10 million each year from year 1 to year 5 Depreciation: 6 million each year from year 1 to year 5 Treasury yields for 10-year bonds are 7% The market risk premium is 7.5% After year 5, EBIT is expected to grow 3% per year in perpetuity How much Buyer should pay for 100% of the shares of Co? Two supermarket chains agree to merge. Executives of both chains agree that cost savings of 2% of annual revenues can be achieved (combined annual revenues for the year of the merger is 300 millions). Revenues are expected to grow at an annual nominal rate of 5%. Both chains' cost of debt stands currently at 6%. Profits are taxed at a 35% rate. What is the value of the synergies? Buyer wants to acquire company Co. The following projections in millions are used to value Co: Revenues Costs Year 1 200 100 Year 2 210 105 105 Year 3 220 110 Year 4 230 115 115 Year 5 240 120 EBIT 100 1 110 120 5 4 Change in NWC Also: Co is financed 80% with equity (E) and 20% with debt (D). The interest rate on the debt is 8%. The tax rate is 40% Appropriate beta of Co is assumed to be 0.8 Capital expenditure: 10 million each year from year 1 to year 5 Depreciation: 6 million each year from year 1 to year 5 Treasury yields for 10-year bonds are 7% The market risk premium is 7.5% After year 5, EBIT is expected to grow 3% per year in perpetuity How much Buyer should pay for 100% of the shares of Co? Two supermarket chains agree to merge. Executives of both chains agree that cost savings of 2% of annual revenues can be achieved (combined annual revenues for the year of the merger is 300 millions). Revenues are expected to grow at an annual nominal rate of 5%. Both chains' cost of debt stands currently at 6%. Profits are taxed at a 35% rate. What is the value of the synergies? Buyer wants to acquire company Co. The following projections in millions are used to value Co: Year 1 200 100 100 Revenues Costs EBIT Change in NWC Year 2 210 105 105 Year 3 220 110 Year 4 230 115 115 Year 5 240 120 120 110 Also: Co is financed 80% with equity (E) and 20% with debt (D). The interest rate on the debt is 8%. The tax rate is 40% Appropriate beta of Co is assumed to be 0.8 Capital expenditure: 10 million each year from year 1 to year 5 Depreciation: 6 million each year from year 1 to year 5 Treasury yields for 10-year bonds are 7% The market risk premium is 7.5% After year 5, EBIT is expected to grow 3% per year in perpetuity How much Buyer should pay for 100% of the shares of Co? Two supermarket chains agree to merge. Executives of both chains agree that cost savings of 2% of annual revenues can be achieved (combined annual revenues for the year of the merger is 300 millions). Revenues are expected to grow at an annual nominal rate of 5%. Both chains' cost of debt stands currently at 6%. Profits are taxed at a 35% rate. What is the value of the synergies? Buyer wants to acquire company Co. The following projections in millions are used to value Co: Revenues Costs Year 1 200 100 Year 2 210 105 105 Year 3 220 110 Year 4 230 115 115 Year 5 240 120 EBIT 100 1 110 120 5 4 Change in NWC Also: Co is financed 80% with equity (E) and 20% with debt (D). The interest rate on the debt is 8%. The tax rate is 40% Appropriate beta of Co is assumed to be 0.8 Capital expenditure: 10 million each year from year 1 to year 5 Depreciation: 6 million each year from year 1 to year 5 Treasury yields for 10-year bonds are 7% The market risk premium is 7.5% After year 5, EBIT is expected to grow 3% per year in perpetuity How much Buyer should pay for 100% of the shares of Co? Two supermarket chains agree to merge. Executives of both chains agree that cost savings of 2% of annual revenues can be achieved (combined annual revenues for the year of the merger is 300 millions). Revenues are expected to grow at an annual nominal rate of 5%. Both chains' cost of debt stands currently at 6%. Profits are taxed at a 35% rate. What is the value of the synergies
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