FI_515_merger_analysis(1)

FI_515_merger_analysis(1) - $23.2 (-) Retention for Growth...

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Projected Postmerger Cash Flow Statements for the Apex Subsidiary 1999 2000 2001 2002 2003 Net Sales $105.0 $126.0 $151.0 $174.0 $191.0 Cost of Goods Sold $75.0 $89.0 $106.0 $122.0 $132.0 Selling and Adm.Expenses $10.0 $12.0 $13.0 $15.0 $16.0 Depreciation $8.0 $8.0 $9.0 $9.0 $10.0 EBIT $12.0 $17.0 $23.0 $28.0 $33.0 Interest $8.0 $9.0 $10.0 $11.0 $11.0 EBT $4.0 $8.0 $13.0 $17.0 $22.0 Taxes $1.6 $3.2 $5.2 $6.8 $8.8 Net Income $2.4 $4.8 $7.8 $10.2 $13.2 (+) Depreciation $8.0 $8.0 $9.0 $9.0 $10.0 (=) Cash Flow $10.4 $12.8 $16.8 $19.2
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Unformatted text preview: $23.2 (-) Retention for Growth $4.0 $4.0 $7.0 $9.0 $12.0 (+) Terminal Value $150.2 (=) Net Cash Flow to Acquirer $6.4 $8.8 $9.8 $10.2 $161.4 NPV of Cash Flows: $92.8 Bid Price: 82.8 NPV of Acquisition: 10.0 IRR of Acquisition: 21.35% Bid Price Per Share: $8.28 Dollars Discount Rate: 18.20% Seller's Stock Price: $6.25 Dollars Growth Rate: 10.00% Seller's S/H Gain P/S: $2.03 Dollars Tax Rate: 40.00% Market Value: $62.50 Millions Number of Shares: 10 Millions (82.8) 6.4 8.8 9.8 10.2 161.4...
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This note was uploaded on 11/15/2010 for the course FINANCE FI515 taught by Professor Haertel during the Spring '10 term at DeVry Denver.

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