AT&T/McCaw Merger Negotiation.

1. What do you believe McCaw is worth? Prepargon a wide-awake DCF using the financial forecast of FCFs birthn in the iron out and in the associated spreadsheet. What key assumptions determine the range of high and unranked values in your valuation digest? Also unhorse on any other valuation approaches and information that you can. For the sift beer of consistency, all groups should use a (low, Darden) risk premium of 5.5%. We performed a DCF Analysis for two scenarios: 1) assuming the purchase of the residual directness of LIN publicize; and 2) assuming the sale of the residual equity of LIN broadcast medium (See video displays 1 & axerophthol; 2). The most critical assumptions impacting value were: 1) give notice rate and 2) terminal growth rate. We relied on send away order between 10.0% and 11.0% based on our analysis of the infrastructure solo AT&T WACC (10.4%), the stand solo McCaw WACC (12.3%), and a blended calculation (11.1%). We chose growt h rates between 3.0% and 4.0% as an estimate of the perpetual growth of FCF (implied Value/ public address system was approximately $300, high by industry standards) (See Exhibit 1). In adjunct to a DCF Analysis, we performed analyses of modern comparable operations (See Exhibit 3) and new-made premiums paid for publicly traded companies (See Exhibit 4).

Results revealed that comparable proceeding were punish at approximately $171 / POP and that recent deals were action on average at approximately 50% higher up 12 month average stock prices. In our opinion, the analysis of recent premiums paid is not reli able; as we are not able to evaluate the com! parability of the included legal proceeding (i.e. the contemplated transaction is large). 2. What are the advantages and disadvantages of a combination between McCaw and AT&T? What is your best alternative to a negotiated concordance with your counterparty? Advantages of a combination between McCaw... If you want to get a blanket(a) essay, order it on our website: OrderCustomPaper.com

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