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Ch 16: Valuation of Acq and mergers, p4 notes example 2 pg 79 Nairobi

This topic has 5 replies, 3 voices, and was last updated 10 years ago by John Moffat.

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October 8, 2015 at 2:28 pm #275541
lonyovko
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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)
October 8, 2015 at 4:46 pm #275572
John Moffat
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The synergy savings are pre-tax and so after tax of 30% will be 7 p.a.
October 10, 2015 at 3:47 am #275699
lonyovko
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Thanks John, your notes and video’s are very helpful
October 10, 2015 at 8:31 am #275713
John Moffat
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Thank you for the comment 🙂
October 14, 2015 at 11:56 pm #276359
kurtlan
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Are there lectures to Chapter 16? Was trying to follow example 1 got stuck trying to figure out the calculation of the WACC.
October 15, 2015 at 8:06 am #276383
John Moffat
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No there is no lecture to go with Chapter 16, but there are lectures on calculating the WACC in earlier chapters.
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