Pinkerton Case - 1) What is the gist of your recommendation...

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1)What is the gist of your recommendation to Tom Wathen?Should he go ahead with $100A)How did you use the information about the only publicly traded security firm Wackenhut
B)What is the value of the combined company (CPP and Pinkerton)?Briefly (no mor
We used the information provided by Wackenhut to find the equity cost of capital as a co
B. Value of Combined CompanyOptimistic CaseAssumptions (Given)198719881989Revenue (percent of 1987)100.00%90.00%80.00%Gross margin percentage8.50%9.00%Operating expenses as percent of sales6.00%5.90%Net working capital as percent of sales8.60%7.40%Net PP&E as of percent revenue4.00%4.00%Free cash flow for PinkertonRevenue408.3367.5326.6Gross margin31.229.4

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Term
Fall
Professor
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Tags
Income Statement, Corporate Finance, Generally Accepted Accounting Principles, Pinkerton

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