This is a case of discussing whether to acquire

may require both a relative valuation method and an absolute valuation method.

I think the outline of this case.

1:First assess the current operating conditions of this head office

2:Then evaluate the target acquisition company to determine whether to acquire

use a relative valuation method and an absolute valuation method.

3:If the acquisition then which way

For example the case gives the cash flow of the ESTIMATE, is to let us valuation of the target company

And discussed the two ways of 70m repayment.1:He estimated that up to $70 million could be borrowed at a nominal rate of 8 3/4% repayable over seven years semiannually, starting the following year. The company would be required to maintain an average compensating balance of 7% on the amount to be borrowed.

2:Alternatively, the $70 million can be borrowed through three revolving 180-day short-term loans with average stated interest rate being 4.5%.