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Using the M&A Valuation & Deal Structuring Model on the Website

question 97

Essay

Using the M&A Valuation & Deal Structuring Model on the website accompanying this text and the data contained in the cells as a starting point, complete the following:
a. What is the enterprise and equity value of Target on the Valuation Worksheet?
b. Increase the sales growth rate by one percentage point (i.e., to 6.5%) on the Target Assumptions Worksheet. What is the impact on the Target's enterprise and equity values? (Hint: See Valuation Worksheet) Close model but do not save results.


Definitions:

Time-Driven Activity-Based Costing

An approach to costing that utilizes precise measurements of the time required to perform activities for calculating the cost of those activities, thereby enabling more precise product or service costing.

Customer Service Department

A division within a company dedicated to addressing customer inquiries, concerns, and providing support.

Unused Capacity

The portion of a company's production capability or resources that is not being utilized to its full potential.

Number of Employees

The total count of individuals working for a company, including full-time and part-time staff.

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