Ignore interest in calculations 1
Estimate of cost of capital of Fodder Co 1
Estimates of growth rates and profit margins for Fodder Co 2
Estimate of intrinsic value of Fodder Co 3
Equity beta of combined co 3
Cost of capital of combined company 1
Estimate of value of combined company 3
Synergy benefits, value to Pursuit Co shareholders and conclusion 2–3

Max marks 16