Example of recent merger and acquisition online

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1. A perpetuity costs 77.1 and makes annual payments at the end of the year. The perpetuity pays 1 at the end of year 2, 2 at the end of year 3,....,n at the end of year (n+1). After year (n+1), the payments remain constant at n. The effective annual interest rate is 10.5%. Calculate n.

2. Timco is planning on paying a dividend of 3 to maintain our 5% growth. The current stock price is 16.13. Flotation costs are 4%. Find the cost of new equity needed for WACC.

3. Look for an example of a recent merger/acquisition online. Why is important to understand the mistakes made in a budget in order to take action for the future? Look for an example of a recent organization/firm bankruptcy. Provide an overview and your opinion/thoughts about that case.

Reference no: EM131975858

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