Estimate the appropriate beta for the ABC acquisition 0.50 ·

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Estimate the appropriate beta for the ABC acquisition 0.50 ·

example: No direct comparison firms available Assume that AOL-Time Warner is interested in acquiring ABC television network from Disney It has estimated the expected incremental future cash flows from acquiring ABC and desires an appropriate beta in order to compute a discount rate to a value that cash flows ·.However, the two major networks that are most comparable, NBC and CBS, are owned by General Electric and Viacom respectively, which have substantial cash flows from other sources BE D/(DE)Network Assets / All Assets GE1.1 0.1 0.25 0.4 Viacom1.3 Assume that the debt of the comparison firms is risk free Assume that the non-network assets of GE and Viacom are substantially similar and thus have the same beta Estimate the appropriate beta for the ABC acquisition 0.50 ·

Estimate the appropriate beta for the ABC acquisition 0.50 ·

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Estimate the appropriate beta for the ABC acquisition 0.50 ·

Estimate the appropriate beta for the ABC acquisition 0.50 ·

Estimate the appropriate beta for the ABC acquisition 0.50 ·

Estimate the appropriate beta for the ABC acquisition 0.50 ·

Estimate the appropriate beta for the ABC acquisition 0.50 ·

Estimate the appropriate beta for the ABC acquisition 0.50 ·

Estimate the appropriate beta for the ABC acquisition 0.50 ·

Best Available Writers