Merger and Acquisition

The case study is about the merger of AT&T and Time Warner, the purpose of the case study is to explain the action of corporation. For this part of the case study I need to prepare a teaching note which will address questions specific to the case. The teaching note will include and exercise to identify the value of the acquisition. The acquisition is meant to create synergy values for the combined firm.
The teaching note should include the following:
1.    Perform a DCF analysis of the target, with free cash flow projections for ten years past the merger year and a terminal value = [final projected year free cash flow*(1+cash flow growth rate)]/[discount rate cash flow growth rate], and compare that with the acquirer offer. You will need to clearly identify any assumptions used when calculating NPV; specifically growth rates, inflation rates, and required return. Present at least two NPV values, one which utilizes a required return calculated with your version of beta based on three year monthly returns.
2.    Present alternate strategies to the merger and evaluate the validity and likelihood of those choices.
3.    Provide an epilogue to explain what actually occurred with the combined firm or in the case of unsuccessful acquisitions the surviving target. This should include stock market performance post-merger/failed merger.
Include an Excel file with any supporting exhibits, i.e. financial statements, financial ratios, DCF analysis, stock price performance, etc.

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