Swatch, Inc. is thinking of acquiring Timex, Inc., and Swatch is attempting to determine the highest...

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Swatch, Inc. is thinking of acquiring Timex, Inc., and Swatch is attempting to determine the highest price per share it should be willing to pay for Timex. It expects Timex's FCF will equal $200 million next year (t = 1). $120 million the year after (t = 2), and then grow at 3% a year forever. Timex has $1000 million in debt and 100 million outstanding shares. Timex also has $150 million in cash on hand now, but $30 of that is required for the firm's operations. Timex's WACC is 8%. a) What is the continuation value of Timex at the end of year 2? $2472 million b) What is the enterprise value of Timex today? $2.407 million c) How much should Swatch, Inc. be willing to pay per share for Timex, Inc.? $15.27 (similar to previous problem but different numbers) Swatch, Inc. is thinking of acquiring Timex, Inc., and Swatch is attempting to determine the highest price per share it should be willing to pay for Timex. It expects Timex's FCF will equal $100 million next year (t = 1). $150 million the year after (t = 2), and then grow at 3% a year forever. Timex's WACC is 16%. While Timex has $20 million in cash on hand now, all of this cash is required for the firm's operations. Timex also has $900 million in debt and 12 million outstanding shares. Based on this information, how much should Swatch, Inc. be willing to pay per share for Timex. Inc.? Write your answers in dollars, rounding to one digit after the decimal point. Swatch, Inc. is thinking of acquiring Timex, Inc., and Swatch is attempting to determine the highest price per share it should be willing to pay for Timex. It expects Timex's FCF will equal $200 million next year (t = 1). $120 million the year after (t = 2), and then grow at 3% a year forever. Timex has $1000 million in debt and 100 million outstanding shares. Timex also has $150 million in cash on hand now, but $30 of that is required for the firm's operations. Timex's WACC is 8%. a) What is the continuation value of Timex at the end of year 2? $2472 million b) What is the enterprise value of Timex today? $2.407 million c) How much should Swatch, Inc. be willing to pay per share for Timex, Inc.? $15.27 (similar to previous problem but different numbers) Swatch, Inc. is thinking of acquiring Timex, Inc., and Swatch is attempting to determine the highest price per share it should be willing to pay for Timex. It expects Timex's FCF will equal $100 million next year (t = 1). $150 million the year after (t = 2), and then grow at 3% a year forever. Timex's WACC is 16%. While Timex has $20 million in cash on hand now, all of this cash is required for the firm's operations. Timex also has $900 million in debt and 12 million outstanding shares. Based on this information, how much should Swatch, Inc. be willing to pay per share for Timex. Inc.? Write your answers in dollars, rounding to one digit after the decimal point.