Topic: Nike aquiring Lululemon
Paper details:
• 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.