Question: please solve and show calculations. nothing else needed. The value of Tampa Tribune is estimated to be $30 million which Media General is not including
The value of Tampa Tribune is estimated to be $30 million which Media General is not including in the purchase of the newspaper division. As part of the purchase, Berkshire is providing a credit agreement (including a term loan and penny warrants) that provides a value at $60.4 million to Berkshire's shareholders upon completion of the deal (i.e., purchase plus credit agreement). If the relevant cost of capital for the newspaper division is 11.07%, by how much do the FCFs have to decline annually during 2017 and beyond before which the deal becomes a negative NPV transaction for Berkshire Hathaway? FCF growth rate during 2017 and beyond (in \%, rounded to two decimals): Calculations: The value of Tampa Tribune is estimated to be $30 million which Media General is not including in the purchase of the newspaper division. As part of the purchase, Berkshire is providing a credit agreement (including a term loan and penny warrants) that provides a value at $60.4 million to Berkshire's shareholders upon completion of the deal (i.e., purchase plus credit agreement). If the relevant cost of capital for the newspaper division is 11.07%, by how much do the FCFs have to decline annually during 2017 and beyond before which the deal becomes a negative NPV transaction for Berkshire Hathaway? FCF growth rate during 2017 and beyond (in \%, rounded to two decimals): Calculations
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