How would you estimate the cost of equity for the acquisition of Omni?
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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
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