BUSI 408 April 25 - We=E/V=81% Wd=D/V=19% Kd=9.5%

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BUSI 408 April 25 15:12 Situation: City Capital want to acquire Interco  We are interested in target company’s WACC V=D+E Total Equity Value=42*325=1525 Total Debt= 257+62+42=361
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Unformatted text preview: We=E/V=81% Wd=D/V=19% Kd=9.5% Ke=Rf+B*MP=9.1%+1.1*7%=16.8% T=41% WACC=14.7% Calculate Free Cash Flow and discounted CF Price/ Share=841/37.5=49 15:12 15:12...
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BUSI 408 April 25 - We=E/V=81% Wd=D/V=19% Kd=9.5%

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