Radio One, Incorporated

radio set maven, In mergedd In general ? Assume a corporate tax rate of 34%, and a market risk premium of 7. 2%. ? Data in exhibit 9 are in $1,000. ? Show and explicate either your calculations, i. e. the reader/grader must be able to follow your reasoning and be able to understand all your calculations without employ time to reconstruct your numbers. ? Make superfluous assumptions if necessary, but make them explicitly. ? Good luck. ? Questions 1. wherefore does Radio One want to lead the 12 urban place from pass along Channel Communications in the round top 50 markets along with the 9 stations in Charlotte, North Carolina, Augusta, Georgia, and Indianapolis, Indiana? What are the benefits and risks? 2. What harm should Radio One gallop on a discounted bullion track down analysis assuming all integrity financing? ? Show and explain bullion flows items needed to be estimated to get pertinent cash flows in 2001 2004. Estimate germane(predicate) cost of capital to c alculate PV of pertinent cash flows assuming acquisition is all equity financed. ? Estimate terminal nourish of potential acquisitions after forecast decimal point ends in 2004. ? What hurt should Radio One hold out on a discounted cash flow analysis using relevant cash flow in 2001 2004 and a terminal value in 2004? ? ar the cash flow projections (in forecast check and terminal value) reasonable?If not revise your calculations. 3. What worth should Radio One passing game on a transaction quadruplicate for equal transactions analysis? What price should Radio One offer on a trading multiple of comparable firm analysis? 4. Assuming that Radio Ones stock price is 30? BCF, can it offer as much as 30? BCF for the forward-looking stations without reducing the stock price? 5. What price should Radio One offer for the new stations?