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  • Mergers & Acquisitions: For High Growth Phase

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    Vinky Bhatia
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    This document provides financial information for evaluating a potential merger or acquisition, including earnings per share (EPS) and dividend per share (DPS) figures for both a high growth phase and stable growth phase. It also lists key valuation inputs like beta, return on assets, and tax rate. The valuation calculates a present value of equity of $79.19 million by discounting the projected future dividend payments using the weighted average cost of capital for each phase.

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    Original Title

    M&A 1

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    This document provides financial information for evaluating a potential merger or acquisition, including earnings per share (EPS) and dividend per share (DPS) figures for both a high growth phase and stable growth phase. It also lists key valuation inputs like beta, return on assets, and tax rate. The valuation calculates a present value of equity of $79.19 million by discounting the projected future dividend payments using the weighted average cost of capital for each phase.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
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    Download as xlsx, pdf, or txt
    11 views2 pages

    Mergers & Acquisitions: For High Growth Phase

    Uploaded by

    Vinky Bhatia
    This document provides financial information for evaluating a potential merger or acquisition, including earnings per share (EPS) and dividend per share (DPS) figures for both a high growth phase and stable growth phase. It also lists key valuation inputs like beta, return on assets, and tax rate. The valuation calculates a present value of equity of $79.19 million by discounting the projected future dividend payments using the weighted average cost of capital for each phase.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Mergers & Acquisitions

    (Given)
    Rs.
    5.7
    2.28

    EPS
    DPS

    Beta
    ROA
    D/E
    Interest
    Growth
    Retention ratio
    Dividend Payout Ratio

    Tax Rate
    Rf
    Mkt premium

    High Growth: Stable growth:


    1.3
    1.15
    15%
    15%
    1
    1
    8%
    8%
    ?
    8%
    60% ?
    40%

    For High Growth Phase:


    Ke
    g

    13.50%
    11.52%
    Yr
    1
    2
    3
    4

    EPS
    6.357
    7.089
    7.906
    8.816

    For Stable Phase:


    Ke
    Retention ratio
    Dividend Payout Ratio

    12.75%
    41.67%
    58.33%

    EPS
    DPS
    Dividend At the end of
    4th Yr

    9.522
    5.554

    PV of Dividend
    Total Present Value of Equity

    116.9318548
    70.461
    79.190

    Yr
    1
    2
    3
    4

    Acquisitions
    40%
    7%
    5%

    DPS
    2.543
    2.836
    3.162
    3.527

    PV of DPS
    2.240
    2.201
    2.163
    2.125
    8.729

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