Firm t wants to get firm c c has 20 m shares outstanding


Firm T wants to get Firm C

C has $20 M shares outstanding target capital structure 30% debt 70% equity C debt with interest rate 8% risk free interest @ 2% market premiu 8%

Calculate:

Rate of return equity use r s = r RF + RP m ( b ) 

Weigh avg cost of capital use W A C C = W drd ( 1 - percent) + wsrs or (w8r8)?

Vaule operations Vops = F C F 0 (1+g)  / W A C C -g)

Firm equity Vs= V ops-debt

Vaule current company stock price (per) share =VS /outstanding shares

 

 

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Finance Basics: Firm t wants to get firm c c has 20 m shares outstanding
Reference No:- TGS01081314

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