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Hastings estimates that if it a quires Vandell, in...




Hastings estimates that if it a quires Vandell, interest payments will be $1,500,000 per year for 3 years, after which the current target capital structure of 30% debt will be maintained. Interest in the fourth year will be $1.472 million, after which interest and the tax shield will grow 5%. Synergies will cause the free cash flows to be $2.5 million , $2.9 million, $3.4 million, and $3.57 million in years 1 through 4, respectively, after which the free cash flows will grow at a 5% rate. What is the unleveled value of Vandell, and what is the value of its tax shields? What i the per share value of van dell to Hastings corporation? Assume that Vandell now has $10.82 million in debt.,sorry here is some additional information i have left out: Hastings corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt. Vandell's debt interest rate is 8%. assume that the risk free rate of interest is 5% and that the market premium is 6%. Both Vandell and Hastings face a 40% tax rate.,can you put this into excel format?


Paper#2743 | Written in 18-Jul-2015

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