Business, 27.06.2020 23:01 mallyosburn

Clear Displays, Inc., manufactures display screens for mobile devices and is looking to expand their business through acquisition. Clear Displays has a weighted average cost of capital of 10%. They are evaluating the opportunity to acquire one of their competitors, Bright Screens, Inc. Cash flows for Bright Screens are forecasted to be $110,000 in each of the next 4 years, and net income for Bright Screens is forecasted to be $90,000 in each of the next 4 years. The projected terminal value for Bright Screens at the end of that 4-year period is $1,250,000. Utilizing the discounted cash flow method, the valuation for Bright Screens is expected to be A. $1,139,050 B. $1,202,450 C. $1,535,300 D. $1,598,700

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Clear Displays, Inc., manufactures display screens for mobile devices and is looking to expand their...

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