Professional Documents
Culture Documents
3rd Sum
3rd Sum
3rd Sum
a
We can value the firms before merger based on the below metric
PAT(1+g)/Ke-g
Firm H Firm I
PAT 12000 9600
g 6.00% 8.00%
Ke 10.00% 12.00%
Value 318000 259200
Revenues 120000
COGS 66000
EBIT 54000
PAT 32400
Cost of capital 0.108981
Expected growth 0.068981
Value 865874.8
3.b