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The Following Information Relates to the Planned Acquisition of a Target

Question 174

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The following information relates to the planned acquisition of a target. Cash flow and synergy figures are after tax. ($M)
The following information relates to the planned acquisition of a target. Cash flow and synergy figures are after tax. ($M)    Calculate the maximum percentage premium that should be offered to the target company's shareholders. Calculate the maximum percentage premium that should be offered to the target company's shareholders.

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($M)
blured image Discount rate: kx = kRF + (kM - kRF)bx ...

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