Question: The table below contains selected financial data from 20X2 for Richmond Co and Grant Ltd. Use this information to answer Questions 39 and 40. How

The table below contains selected financial data from 20X2 for Richmond Co and Grant Ltd. Use this information to answer Questions 39 and 40.

Richmond Grant 3,125 89% 200 74 35% 35% 10% 10% 2,000 1,300

How much is the overall synergy worth if the aggregate standalone value of the two firms is $5748.42 million?

Richmond Grant 3,125 89% 200 74 35% 35% 10% 10% 2,000 1,300 Richmond Co and Grant Ltd are considering a merger. Both firms are in steady state and are expected to grow 5% a year in the long term. Capital spending is expected to grow at the same rate and be offset by Revenue $m COGS (as a proportion of revenue) Depreciation $m Tax rate Working capital (as a proportion of revenue) Market value of equity $m 4,400 87.5% depreciation. Assume Richmond Co has a WACC of 11.98%, which will fall to 11.7% as a merged company. As a result of the merger, the combined firm is expected to have a COGS of only 86% of total revenues. The combined firm does not plan to borrow additional debt. Assuming other operating expenses are zero. 24. What is the FCF in 20X3 of Richmond?

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