![subject](/tpl/images/cats/mat.png)
Mathematics, 16.12.2020 07:30 sassyluvinherself
Juicers Inc. is thinking of acquiring Fast Fruit Company. Juicers expects Fast Fruit's NOPAT to be $9 million the first year, with no net new investment in operating capital and no interest expense. For the second year, Fast Fruit is expected to have NOPAT of $25 million and interest expense of $5 million. Also, in the second year only, Fast Fruit will need $10 million of net new investment in operating capital. Fast Fruit's marginal tax rate is 40%. After the second year, the free cash flows and the tax shields from Fast Fruit to Juicers will both grow at a constant rate of 4%. Juicers has determined that Fast Fruit's cost of equity is 18.00%, and Fast Fruit currently has no debt outstanding. Assume that all cash flows occur at the end of the year, Juicers must pay $35 million to acquire Fast Fruit. What it the NPV of the proposed acquisition? Note that you must first calculate the value to Juicers of Fast Fruit's equity. a. $75.5 million b. $45.0 million c. $68.2 million d. $83.2 million
![ansver](/tpl/images/cats/User.png)
Answers: 2
![](/tpl/images/ask_question.png)
![](/tpl/images/ask_question_mob.png)
Other questions on the subject: Mathematics
![image](/tpl/images/cats/mat.png)
![image](/tpl/images/cats/mat.png)
![image](/tpl/images/cats/mat.png)
Mathematics, 21.06.2019 20:00, alondrahernande3
Which sums are equal to 1hold 6/8? choose all answers that are correcta.1/8+6/8b.12/8+2/8c.8/8+1/8 +1/8+1/8+1/8+1/8+1/8d.8/8+6/8
Answers: 1
![image](/tpl/images/cats/mat.png)
Mathematics, 21.06.2019 21:30, baltazmapa629n
The length of a field is 100 yards and its width is 75 yards. if 1 inch represents 25 yards, what would be the dimensions of the field drawn on a sheet of paper?
Answers: 1
You know the right answer?
Juicers Inc. is thinking of acquiring Fast Fruit Company. Juicers expects Fast Fruit's NOPAT to be $...
Questions in other subjects:
![Konu](/tpl/images/cats/mat.png)
Mathematics, 18.09.2019 21:00
![Konu](/tpl/images/cats/mat.png)
Mathematics, 18.09.2019 21:00
![Konu](/tpl/images/cats/mat.png)
Mathematics, 18.09.2019 21:00
![Konu](/tpl/images/cats/health.png)
Health, 18.09.2019 21:00
![Konu](/tpl/images/cats/ekonomika.png)
Business, 18.09.2019 21:00
![Konu](/tpl/images/cats/es.png)
Spanish, 18.09.2019 21:00
![Konu](/tpl/images/cats/en.png)
![Konu](/tpl/images/cats/biologiya.png)
![Konu](/tpl/images/cats/biologiya.png)
Biology, 18.09.2019 21:00
![Konu](/tpl/images/cats/himiya.png)
Chemistry, 18.09.2019 21:00