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(millions) Current market price per share for the target company
Percentage of the acquisition Ninanced with debt Percentage of the
acquisition Ninanced with common equity 4% 1.07 5% 8% 20% 14
$51 34% 66% What is the after tax cost of debt for this merger (as we
did in chapter 16)? What is the after tax cost of common equity for
this merger (as we did in chapter 16)? What is the weighted average
cost of capital for this acquisition candidate (as we did in chapter 16)?
Please run a net present value using the WACC calculated above with
the total cash Nlows from the target (given above) to determine the
maximum price per share you are willing to pay for this target
candidate? Based what you calculated and the current market price,
would you pursue this candidate?
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The Bureau of Economic Analysis
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tutorialoutletdotcom
To answer this question, you must obtain data from the Bureau of
Economic Analysis (BEA),http://www.bea.gov, on the U.S. balance
of payments (BOP) tables. You can either use theinteractive tables or
the "US International Transactions" pre-formatted tables released
onDecember 15, 2016, (link). Obtain the following annual data
for United States in 2015
.1. Based on table 1.1, what is the trade balance (TB) for goods,
services, and total?
2. Based on table 1.1, what is the net factor income from abroad
(NFIA), net unilateraltransfers (NUT), and the current account (CA)?
3. Based on table 1.2, what is the most important component of net
factor receipts fromabroad and net factor payments abroad?
4. Based on table 1.1., what is the balance of the financial account
(FA) as defined in thetextbook?
5. Based on table 1.1., what is the component that accounts for the
largest increase inforeign assets owned by the United States
(abstracting from "other investment assets")?What is the component
that accounts for the largest increase in liabilities owed by theUnited
States?3