An appropriate value of a target to the acquiring firm is:
A) the future value of the cash flow that the target can expect over the life of the target's assets.
B) the present value of the cash flow that the target can expect over the life of the target's assets.
C) the present value of the estimated cash flow of the firm over a five year period plus the present value of the salvage value of the target's assets.
D) the future value of the expected cash flow from current and expected contracts of the target over the life of the target's assets.
Correct Answer:
Verified
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