Describes how an acquisition opportunity as a capital budgeting problem appreciated. The cash flows are discounted at the cost of capital and debt deducted value of equity of the target company. A major contribution of note is the discussion of five methods for the construction of a terminal value of future cash flows. Beyond the normal planning horizon

Describes how an acquisition opportunity as a capital budgeting problem appreciated. The cash flows are discounted at the cost of capital and debt deducted value of equity of the target company. A major contribution of note is the discussion of five methods for the construction of a terminal value of future cash flows. Beyond the normal planning horizon
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William E. Fruhan
8 pages.
Publication Date: Jan 23, 1989. Prod #: 289039-PDF-ENG
Note: Valuing a Business Acquisition Opportunity HBR case solution

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