Summary of Performance Tests with Exhibits

• Prepare a summary of performance tests and analysis of the target acquisition.

• Perform the following tests to help determine what the acquiring company will pay for the acquisition-this is a range. The focus of this deliverable is the target acquisition company.

• Calculate the value of the firm's operations.

• Calculate weighted average cost of capital (target company).

• Determine the firm's intrinsic value.

• Calculate the firm's market value.

• Determine the firm's book value.

• Determine what the parent company will pay for the target acquisition company. Be sure to include how the target company provides synergies and opportunities to the parent company.

• Place the document in Doc Sharing by the end of the week.