AT&T/McCaw Merger Negotiation.

1. What do you believe McCaw is worth? Prep ar a restrained DCF using the financial forecast of FCFs lendn in the drive and in the associated spreadsheet. What key assumptions determine the range of high and cark values in your valuation digest? Also bulge on any other valuation approaches and information that you can. For the sieve 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 outspokenness of LIN publicize; and 2) assuming the sale of the residual equity of LIN send (See butt ons 1 & axerophthol; 2). The most critical assumptions impacting value were: 1) give notice rate and 2) terminal growth rate. We relied on rebate order in the midst of 10.0% and 11.0% based on our analysis of the run solo AT&T WACC (10.4%), the stand whole McCaw WACC (12.3%), and a blended calculation (11.1%). We chose growth rates between 3.0% and 4.0% a s an estimate of the perpetual growth of FCF (implied Value/ pappa 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 legal proceeding were punish at approximately $171 / POP and that recent deals were accomplish on average at approximately 50% in a higher place 12 month average stock prices. In our opinion, the analysis of recent premiums paid is not reliable; as we are not able to evaluate the comparability of the included ! proceedings (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 intellect 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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