Using the M&A Valuation & Deal Structuring Model accompanying this text and the data contained in the cells as a starting point, complete the following:
a. On the Valuation worksheet, what is the enterprise and equity value of Target on the Valuation Worksheet?
b. On the worksheet named Target Assumptions, decrease COGS (cost of goods sold) as a percent of sales by one percentage point (i.e., .43 to .44) on the Target Assumptions Worksheet.
What is the impact on the Target's enterprise and equity values? Close Model but do not save results.