synergy - VALUING SYNERGY: WORKSHEET 50 SYNERGY VALUATION...

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VALUING SYNERGY: WORKSHEET 50 SYNERGY VALUATION WORKSHEET Enter the following information on the bidding firm Current Financial Information Revenues in current year = $1,000.00 COGS as % of Revenues = 70.00% Tax Rate on income = 35.00% Interest Expenses = $100.00 Current Depreciation = $50.00 Current Capital Spending = $75.00 Working Capital as % of Revenue = 5.00% Projections of growth in earnings Expected growth rate - next 5 years = 15.00% Expected growth rate - after 5 years = 6.00% Risk measures Beta of the stock = 1.10 Enter the following information on the target firm Current Financial Information Revenues in current year = $800.00 COGS as % of Revenues = 75.00% Tax Rate on income = 35.00% Interest Expenses = $100.00 Current Depreciation = $75.00
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VALUING SYNERGY: WORKSHEET 51 Current Capital Spending = $100.00 Working Capital as % of Revenue = 5.00% Projections of growth in earnings Expected growth rate - next 5 years = 20.00% Expected growth rate - after 5 years = 7.00% Risk measures
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This note was uploaded on 06/28/2010 for the course MKTG 00HP01 taught by Professor Himanshu during the Spring '10 term at Indiana Institute of Technology.

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synergy - VALUING SYNERGY: WORKSHEET 50 SYNERGY VALUATION...

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