Unformatted text preview: Collinsville plant. 1. Estimate the appropriate weighted average cost of capital (WACC) for the Collinsville plant. 2. Use the WACC method to estimate the acquisition’s net present value (excluding the laminate technology). 3. Calculate the value of the tax shields associated with the debt issued to finance the acquisition. 4. Use the adjusted present value method to estimate the acquisition’s net present value (excluding the laminate technology). 5. Explain the difference between your answer for Question 2 and Question 4. (Why do you get different answers?)...
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- Spring '09
- Valuation, Weighted average cost of capital, Years in the future, 3rd millennium, 1902, Liu Dixon Corporation