Use the table below to answer the following question. What would be the required synergy given a premium of $250,000,000 if the company thinks that it will take two years to implement the synergies, and if the cost of capital is 15 percent? What does this number mean?
$$\begin{array} { | l | l | l | l | }
\hline \begin{array} { c }
\text { Years until syuergies } \
\text { are inuplemeuted }
\end{array} & \text { Cost of capital } & & \
\hline & 10 \% & 15 \% & 20 \% \
\hline 0 & 0.100 & 0.150 & 0.200 \
\hline 1 & 0.110 & 0.173 & 0.240 \
\hline 2& 0.121 & 0.198 & 0.288 \
\hline 3 & 0.133 & 0.228 & 0.346 \
\hline 4 & 0.146 & 0.262 & 0.415 \
\hline5& 0.161 & 0.302 & 0.498 \
\hline
\end{array}$$

Question

Use the table below to answer the following question. What would be the required synergy given a premium of $250,000,000 if the company thinks that it will take two years to implement the synergies, and if the cost of capital is 15 percent? What does this number mean?
 $$\begin{array} { | l | l | l | l | } 
\hline \begin{array} { c } 
\text { Years until syuergies } \
\text { are inuplemeuted }
\end{array} & \text { Cost of capital } & & \
\hline & 10 \% & 15 \% & 20 \% \
\hline 0 & 0.100 & 0.150 & 0.200 \
\hline 1 & 0.110 & 0.173 & 0.240 \
\hline 2& 0.121 & 0.198 & 0.288 \
\hline 3 & 0.133 & 0.228 & 0.346 \
\hline 4 & 0.146 & 0.262 & 0.415 \
\hline5& 0.161 & 0.302 & 0.498 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Use the table below to answer the following question. What would be the required synergy given a premium of $250,000,000 if the company thinks that it will take two years to implement the synergies, and if the cost of capital is 15 percent? What does this number mean?
 $$\begin{array} { | l | l | l | l | } 
\hline \begin{array} { c } 
\text { Years until syuergies } \
\text { are inuplemeuted }
\end{array} & \text { Cost of capital } & & \
\hline & 10 \% & 15 \% & 20 \% \
\hline 0 & 0.100 & 0.150 & 0.200 \
\hline 1 & 0.110 & 0.173 & 0.240 \
\hline 2& 0.121 & 0.198 & 0.288 \
\hline 3 & 0.133 & 0.228 & 0.346 \
\hline 4 & 0.146 & 0.262 & 0.415 \
\hline5& 0.161 & 0.302 & 0.498 \
\hline
\end{array}$$

Use the Table Below to Answer the Following Question