Westparley Co (March 2020)

Hi John,

Part b(iii) – in the computation of the total value which Westparley Co’s shareholders will gain from the acquisition of Matravers Co, it includes Less: Market value of debt(Mvd) of 6,500 million. Is this because the FCF and additional synergy computed are inclusive of debt(as they are not FCFE). Therefore, to calculate the value shareholders will gain, it is required to remove the mvd?