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  • Sensitivity Analysis

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    This document contains two sensitivity analyses showing how maximum acquisition bid prices and number of shares change as discount rates and terminal growth rates are varied. In the discount rate analysis, maximum bid price decreases from $100.15 to $89.18 as the discount rate increases from 8.5% to 10.24%, while the number of shares decreases from 3.14 to 2.79. In the terminal growth rate analysis, maximum bid price increases from $82.61 to $89.18 as the terminal growth rate increases from 1% to 3%, while the number of shares increases from 2.59 to 2.79.

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    This document contains two sensitivity analyses showing how maximum acquisition bid prices and number of shares change as discount rates and terminal growth rates are varied. In the discount rate analysis, maximum bid price decreases from $100.15 to $89.18 as the discount rate increases from 8.5% to 10.24%, while the number of shares decreases from 3.14 to 2.79. In the terminal growth rate analysis, maximum bid price increases from $82.61 to $89.18 as the terminal growth rate increases from 1% to 3%, while the number of shares increases from 2.59 to 2.79.

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    8 views2 pages

    Sensitivity Analysis

    Uploaded by

    dcj
    This document contains two sensitivity analyses showing how maximum acquisition bid prices and number of shares change as discount rates and terminal growth rates are varied. In the discount rate analysis, maximum bid price decreases from $100.15 to $89.18 as the discount rate increases from 8.5% to 10.24%, while the number of shares decreases from 3.14 to 2.79. In the terminal growth rate analysis, maximum bid price increases from $82.61 to $89.18 as the terminal growth rate increases from 1% to 3%, while the number of shares increases from 2.59 to 2.79.

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    of 2

    Sensitivity Analysis: Maximum Bid as Synergies Vary by Discount Rate

    Discount Rate 8.50% 9.00% 9.50% 10.00% 10.24%


    Synergy Value 8,150 7,374 6,717 6,154 5,911
    Offer Price $ 100.15 $ 96.35 $ 93.13 $ 90.37 $ 89.18
    No. of Shares 3.14 3.02 2.92 2.83 2.79
    % Share Change 12.3% 8.0% 4.4% 1.3% 0.0%

    Sensitivity Analysis: Maximum Bid as Synergies Vary by Terminal Growth Rate


    TV Growth Rate 1.00% 1.50% 2.00% 2.50% 3.00%
    Synergy Value 4,571 4,849 5,160 5,512 5,912
    Offer Price $ 82.61 $ 83.97 $ 85.49 $ 87.22 $ 89.18
    No. of Shares 2.59 2.63 2.68 2.73 2.79
    % Share Change -7.4% -5.8% -4.1% -2.2% 0.0%
    11.00% 11.50% 12.00%
    5,240 4,864 4,530
    $ 85.89 $ 84.04 $ 82.41
    2.69 2.63 2.58
    -3.7% -5.8% -7.6%

    3.50% 4.00% 4.50%


    6,371 6,904 7,530
    $ 91.43 $ 94.05 $ 97.11
    2.86 2.63 3.04
    2.5% -5.8% 8.9%

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