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Using the Discounted Cash Flow method and the formula approach (9.3a, p. 248) of the textbook, calculate the maximum price that should be paid for a target company - Oxford Corporation.  Note that this company has 5 years of supernormal growth and then no growth.

Given information  re Oxford Corporation (all $ Amounts in Millions): 

Ro:  Initial Year Revenues:                                           $1,000

n = Number of growth years:                                          5

m = Net Operating Income Margin                                    15.0%

T = Tax Rate                                                               40.0%

g = Growth Rate                                                           18.0%

I = Investment Rate                                                      8.0%

k = Cost of Capital                                                        9.84%

h = Calculation Relationship = [(1 + g)/(1 + k)] - 1             0.0743

Please help with detailed solution during next hour

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