This paper circulates around the core theme of Company X is planning to acquire the company Y. However, John, the CFO of X company together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
6. Company X is planning to acquire the company Y. However, John, the CFO of X company, is very… 1 answer below » 6. Company X is planning to acquire the company Y. However, John, the CFO of X company, is very uncertain about the future of this acquisition under current economy. If economy is good, Y will generate free cash flows of $50 million per year for 3 years (starting next year). If economy is bad, Y will only have free cash flows of $10 million per year for 2 years (starting next year). There is an equal chance that economy will be good or bad (probability = 50%). X is offering $80 million to acquire Y. Do you think $80 million a fair price? Why or why not? Use 10% discount rate in your View complete question » 6. Company X is planning to acquire the company Y. However, John, the CFO of X company, is very uncertain about the future of this acquisition under current economy. If economy is good, Y will generate free cash flows of $50 million per year for 3 years (starting next year). If economy is bad, Y will only have free cash flows of $10 million per year for 2 years (starting next year). There is an equal chance that economy will be good or bad (probability = 50%). X is offering $80 million to acquire Y. Do you think $80 million a fair price? Why or why not? Use 10% discount rate in your calculation. Document Preview: 6. Company X is planning to acquire the company Y. However, John, the CFO of X company, is very uncertain about the future of this acquisition under current economy. If economy is good, Y will generate free cash flows of $50 million per year for 3 years (starting next year). If economy is bad, Y will only have free cash flows of $10 million per year for 2 years (starting next year). There is an equal chance that economy will be good or bad (probability = 50%). X is offering $80 million to acquire Y. Do you think $80 million a fair price? Why or why not? Use 10% discount rate in your calculation. Attachments: Q.docx View less » Jul 29 2015 11:07 AM
