skip to Main Content
The smarter way
to do assignments.

Please note that this is just a preview of a school assignment posted on our website by one of our clients. If you need assistance with this question too, please click on the Order button at the bottom of the page to get started.

Acme is also considering the acquisition of a firm in the Czech
Republic and would like your opinion on this. It plans to operate
the firm for 3 years and then reevaluate the holding.
Free Cash flows are estimated as follows:
• Year 1 – 38.63M Czech Koruna (CZK), Year 2 – 44.33 M CZK,
• Year 3 – 50.48M CZK
• The third year terminal value is estimated at 375M CZK.
The Czech Koruna’s exchange rate is assumed to be .038 USD/CZK for
each year. Acme uses a WACC of 13 % for its domestic projects. So,
the PV of the FCF’s for the firm is 363.78 M CZK or $13.82M. The
Czech firm has 1,000,000 shares outstanding and a debt to equity
ratio of 1:1. Current market price is 185 CZK per share.
All monetary information (except per share) should be presented in
CZK millions (i.e., do not convert to USD).
1. Should Acme make a deal if its policy is to never exceed a 20%
premium in any tender offer? To defend your position, you must
prepare and present an Excel template that includes the calculated
fair value premium over market.
2. What changes in the analysis or additional analysis do you
suggest before a final decision should be made?
3. Using the DCF methodology required in question 1, please take
one of your suggestions and reevaluate the buy-out. To complete
this question, you will have to present a second Excel template
that includes your new assumed values and supports your
recommendations. Further, please comply with the following:
• Assumptions must be reasonable – i.e., don’t select arbitrary
values. Some discussion should be provided that explains how you
arrived at your new assumed values.
• Variable changes should be restricted to the discount rate, the
FCFs, and/or the terminal value. Please present only one set of
assumptions (e.g., do not submit a table that includes multiple
values for the same variables.)
• To demonstrate that you have successfully prepared the Excel
template, no two students may use the same values. To help ensure
that your values are unique, please use a minimum of three
significant (i.e., non-zero) digits to the right of the decimal
point.
 
1. Should Acme make a deal if its policy is to never exceed a
20% premium in any tender offer? To defend your position, you must
prepare and present an Excel template that includes the calculated
fair value premium over market.
2. What changes in the analysis or additional analysis do you
suggest before a final decision should be made? 
3. Using the DCF methodology required in question 1, please take
one of your suggestions and reevaluate the buy-out. To complete
this question, you will have to present a second Excel template
that includes your new assumed values and supports your
recommendations.

GET HELP WITH THIS ASSIGNMENT TODAY

Clicking on this button will take you to our custom assignment page. Here you can fill out all the additional details for this particular paper (grading rubric, academic style, number of sources etc), after which your paper will get assigned to a course-specific writer. If you have any issues/concerns, please don’t hesitate to contact our live support team or email us right away.

How It Works        |        About Us       |       Contact Us

© 2018 | Intelli Essays Homework Service®

Back To Top