ds, year-end rate

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 99.4C
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Acquirer Corporation would like to purchase the equity of Target Corporation. Target Corporation has the following financial information and forecasts:

*How much is the value of control over Target Corporation from the point of view of Acquirer Corporation?

Current Management
After Acquisition
Number of shares outstd.
24,000.00
Dividends last year
25.00
Dividends, year-end
26.40
Growth rate
0.04
0.04
Required rate of return
0.16
0.15
Transcribed Image Text:Current Management After Acquisition Number of shares outstd. 24,000.00 Dividends last year 25.00 Dividends, year-end 26.40 Growth rate 0.04 0.04 Required rate of return 0.16 0.15
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