bwBASIC/BP100/MERGANAL.BAS

1 REM MERGANAL  
5 CLEAR  1000  
10 CLS  
20 PRINT  TAB(15); "MERGER ANALYSIS":PRINT   
30 PRINT "ONE OF THE MAJOR TOPICS DISCUSSED IN MERGER AND ACQUISITION  
35 PRINT "ANALYSIS IS WHAT THE WORTH OF THE POTENTIAL ACQUISITION IS.  
40 PRINT "THIS PROGRAM DOES A VALUATION CALCULATION FOR A LEVERED FIRM.  
45 PRINT "THERE ARE SEVERAL INPUTS. OUTPUT IS THE VALUE OF THE FIRM.  
50 PRINT :INPUT "PRESS ENTER TO BEGIN";Z9$  
100 CLS  
110 INPUT "PRESENT TOTAL VALUE OF FIRM'S STOCK";V  
120 INPUT "EARNINGS BEFORE INTEREST AND TAXES ";EB  
130 INPUT "INCOME TAX RATE(%)                 ";H:H=H/100  
140 INPUT "MARKET VALUE OF FIRM'S DEBT        ";Z  
145 V=V+Z  
150 KH = EB*(1 - H)/(V-H*Z): REM AFTER TAX DISCOUNT RATE FOR UNLEVERED FIRM  
155 INPUT "HOW MUCH DEBT CAN FIRM HANDLE";Z  
160 INPUT "WHAT WILL FUTURE TAX RATE BE";H:H=H/100  
163 INPUT "ENTER FUTURE EARNINGS BEFORE INTEREST & TAXES";EB  
165 V1 = EB*(1-H)/KH + H*Z  
170 PRINT : PRINT USING "VALUE OF THE FIRM FOR ACQUISITION = $#########";V1  
180 PRINT :INPUT "PRESS ENTER FOR MORE COMPUTATION";Z9$  
185 IF Z9$ = "-1" THEN END
190 GOTO  100