Company H is a hardware chain, focused in “do it yourself” equipment rentals and materials. The one method to utilize excess fund is an acquisition. Company H’s boss and person Z decided to value the potential target of company L. For the purpose of this person Z conducted certain estimation regarding the company L. To discuss: The economically justifiable and not justifiable reasons and suitable reason for this condition.

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Chapter 26, Problem 1MC

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Company H is a hardware chain, focused in “do it yourself” equipment rentals and materials. The one method to utilize excess fund is an acquisition. Company H’s boss and person Z decided to value the potential target of company L. For the purpose of this person Z conducted certain estimation regarding the company L.

To discuss: The economically justifiable and not justifiable reasons and suitable reason for this condition.

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