In this question it seems when combining cashflows that an amount of 3 is deducted for each of the 5 years, where does this come from?
e.g. year one (c/f Nairobi 20 plus c/f delhi 8, plus synergy savings 10= 38 vs 35 given in the solution)
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Ch 16: Valuation of Acq and mergers, p4 notes example 2 pg 79 Nairobi
10y ago#1The synergy savings are pre-tax and so after tax of 30% will be 7 p.a.
Thanks John, your notes and video's are very helpful
10y ago#3Thank you for the comment :-)
Are there lectures to Chapter 16? Was trying to follow example 1 got stuck trying to figure out the calculation of the WACC.
10y ago#5No there is no lecture to go with Chapter 16, but there are lectures on calculating the WACC in earlier chapters.
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