What is the value of synergies created based on the following data? Weighted Average Cost of Capital Valuation of Synergies: Tax Rate = (in $US millions) Revenue Variable Cost Costs for Automobile Radios Costs for Non-Auto Radios Programming Marketing Corporate Technology Total Pre-Tax Synergies 13.00% 40.00% 2009 2010 50% $300.0 $309.0 65% 65% $105.0 $108.2 $105.0 $157.5 60. 90.0 50. 75.0 20.0 30.0 20.0 30.0 40.0 60.0 $295.0 $442.5 $400.0 $550.7 =-20% 3%
What is the value of synergies created based on the following data? Weighted Average Cost of Capital Valuation of Synergies: Tax Rate = (in $US millions) Revenue Variable Cost Costs for Automobile Radios Costs for Non-Auto Radios Programming Marketing Corporate Technology Total Pre-Tax Synergies 13.00% 40.00% 2009 2010 50% $300.0 $309.0 65% 65% $105.0 $108.2 $105.0 $157.5 60. 90.0 50. 75.0 20.0 30.0 20.0 30.0 40.0 60.0 $295.0 $442.5 $400.0 $550.7 =-20% 3%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:What is the value of synergies created based on the following data?
Weighted Average Cost of Capital Valuation of Synergies:
Tax Rate =
(in $US millions)
Revenue
Variable Cost
Costs for Automobile Radios
Costs for Non-Auto Radios
Programming
Marketing
Corporate
Technology
Total Pre-Tax Synergies
13.00%
40.00%
2009 2010
50%
$300.0 $309.0
65% 65%
$105.0 $108.2
$105.0 $157.5
90.0
75.0
30.0
30.0
60.0
60.
50.
20.0
20.0
40.0
$295.0 $442.5
$400.0 $550.7
g=-20%
3%
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