Myr9 myr9 sale of firm myr500 cash flows in myr

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MYR9MYR9Sale of FirmMYR500Cash Flows in MYRMYR51.5MYR59.1MYR567.3Exchange Rate of MYR$.23$.23$.23Cash Flows in $$11.8$13.6$130.5PV (13% disc. rate)$10.4$10.7$90.4Cumulative PV$10.4$21.1$111.5The value of the Malaysian target based on the information provided is $111.5 million.
9. The Malaysian target's value based on its stock price is $________ million.
10. The target's board has indicated that it finds a premium of 30 percent appropriate. Youhave been asked to negotiate for Klimewsky with the Malaysian target. What is themaximum percentage premium you should be willing to offer?
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Term
Spring
Professor
Mr.Guedhami

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