FCF 9th edition Chapter 26

FCF 9th edition Chapter 26 - $7,519,408.63 c. NPV...

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Chapter 26 Question 15 Input Area: Foxy Pulitzer Price-earnings ratio 15.50 11.50 Shares outstanding 1,200,000 500,000 Earnings $3,600,000 $680,000 Dividends $810,000 $310,000 Analyst growth rate 5% Management growth rate 7% c. Cash offer $18.00 e. Shares offered 200,000 g. Consultant growth rate 6% Output Area: a. Pulitzer EPS $1.36 Pulitzer stock price $15.64 Pulitzer DPS $0.62 Equity required return 9.16% P with new growth rate $30.68 $15,339,408.63 b. Gain
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Unformatted text preview: $7,519,408.63 c. NPV $6,339,408.63 d. Highest bid price $30.68 e. Market value of Foxy $55,800,000 $50.81 NPV $5,176,635.97 The acquisition should go forward. The company should offer cash. g. P with new growth rate $20.78 $10,390,828.95 Gain $2,570,828.95 NPV cash $1,390,828.95 $47.28 NPV stock $934,996.25 The acquisition should go forward. The company should offer cash. V T * P C V P * P Combined...
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