What would be the equity value of Delta to Alpha

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Reference no: EM133024360

Question - Alpha wishes to acquire Delta. The relevant WACC is 10%. The projected FCF for the next three years is

Year 1 - 5.0 m

Year 2 - 5.5 m

Year 3 - 6.0 m

And it is expected to grow thereafter at 5% annually. Note that Delta has $20 million in debt and 10 million common shares outstanding. What would be the equity value of Delta to Alpha (rounded)?

Reference no: EM133024360

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