[semira123]

I think your result is same with me.
I thought i use 1200 equity and 400 mv of bond for wacc by error .but i dont think thats the case

Thank you very much

[semira123]

Do you get 9% wacc by using the new capital structure (50:50) right?

[semira123]

I have only just discussed as nothing is stated on the question to hedge the uncover part by forward .
And the dividnend growth is 6.85 i think, to be honest i have not completed dividend valuation model.

[semira123]

Yes i also get 13% ke and 9% wacc by using 50:50 capital structure.
Yes on number 2 it is not perfect hedge then i discuss the impact of imperfect hedging on using future and option.

On forward rate i use the selling rate to change to dollar .
On future i use lock in rate method.
And on option i use put option and decreae the premium payment.

[semira123]

First i find the ungeared asset beta of the acquirer co then to get asset beta of combined co. I calculate the average asset beta of 2 company by the operation percebatge.
Then regear it by 50 50 percent of equity and beta ratio .

Then i use capm to get cost of equity

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