Use the Table Below to Answer the Following Question

question 114

Essay

Use the table below to answer the following question. What would be the required synergy given a premium of $250,000,000 if the company thinks that it will take two years to implement the synergies, and if the cost of capital is 15 percent? What does this number mean?
$$\begin{array} { | l | l | l | l | } \hline \begin{array} { c } \text { Years until syuergies } \\\text { are inuplemeuted }\end{array} & \text { Cost of capital } & & \\\hline & 10 \% & 15 \% & 20 \% \\\hline 0 & 0.100 & 0.150 & 0.200 \\\hline 1 & 0.110 & 0.173 & 0.240 \\\hline 2& 0.121 & 0.198 & 0.288 \\\hline 3 & 0.133 & 0.228 & 0.346 \\\hline 4 & 0.146 & 0.262 & 0.415 \\\hline5& 0.161 & 0.302 & 0.498 \\\hline\end{array}$$

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Definitions:

Authority

The ability or jurisdiction to instruct, decide, and compel adherence.

Adaptive Organizations

Companies that can quickly adjust to changes in the environment or market to maintain competitiveness.

Organic Designs

Organizational structures that emphasize adaptability, with teams or individuals having wide-ranging tasks and roles that evolve based on the project needs and external environment.

Decentralized Authority

A system where decision-making powers are distributed throughout various levels in an organization, rather than being concentrated at a single point.