I need some assistance with these assignment. study for viability of takeover Thank you in advance for the help!

To calculate the viability and expected price of the deal, it is necessary to calculate the valuation of FKI. To be able to do this, we would be required to evaluate the following:

1. The total value of Assets.

2. Previous income graph or data.

3. The forecasted trend of revenues.

4. Comparison with competitors.

Since we know the major factor for the occurrence of such a loss, we may try to look for a solution (although the solution mostly lies in America’s economic conditions). But we will not forget other positive factors such as the growing business in rest of the world, the creditability created by the brand names owned by FKI, and finally, the fact that a larger and more renowned company such as Wolseley would create a huge impact on the creditors and other parties (in a positive manner).

To analyze the profitability indicator ratio we will use the return on asset technique (Lee, D. & Colon, A., 1999).

Return on Asset &nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp. = Net income / Average Total Assets

&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp.&nbsp. = 65.7 / [{(363.3 + 265.6 + 0.6)/3} + {(202 + 336.3 + 5.5 + 77.3 + 78.7)/5}].