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Assignment- Autumn 2015

Gegenfeuer ("GF"), A.G., a (mythical) German producer of software and hardware for safety services and products, has developed a revolutionary technology for extinguishing fires. Successful testing and relatively rapid approval of its new process has enabled the company to increase in revenues by 150% in the past 3 years. As a result, the company's management has decided to expand to Denmark, with the goal of acquiring (an actual company) Falck A/S, which has an extensive global network in over 70 countries. This assignment requires that you examine the2014 consolidated financial statements of Falck A/S in order to complete the following tasks.

Required:

Task 1

Calculate the effective Weighted Average Cost of Capital (WACC)using datafrom the consolidated financial statements, a value of 1.1 for ß and a risk-free rate of 1.3%.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91616840

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