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How would you estimate the cost of equity for the acquisition of Omni?
How would you estimate the cost of equity for the acquisition of Omni? You will find below some extra information about the comparable firms presented in Exhibit 3.
** Please see attached PDF **
Please use an excel spreadsheet in the response. I need to understand how to arrive at the cost of equity.
Assume Omni`s target debt to equity ratio is 1
Company Name Beta Average Tax Rate
Rentex 1.61 0.28
Servisco 1.24 0.31
Means Services 0.84 0.34
NSI 0.69 0.32
Unitog 1.23 0.29