Solution for QID #115729: A company PT A (Tbk) as a target will be acquired by another | StudyHelpMe

A company PT A (Tbk) as a target will be acquired by another company, namely PT B (Tbk) as the holding company. The information of the two companies after the acquisition is as follows :     PT A (Tbk) PT B (Tbk) FCF (Rp miliar) 15 6 WACC (%) 9% 5% Growth (%) 3% 5% Share price (Rp) 20.000 10.000 Shares outstanding (lembar)   8.000.000   1.000.000   a. You as a corporate finance consultant, try to calculate the synergies resulting from the acquisition, assuming that: (i) the sales value of the two companies is the same as the market value and (ii) both companies have stable growth in perpetuity. b. Why is a large company with slow growth being the target of another company to acquire?