Saturday, March 10, 2018

AT&T was willing to pay $39 Billion to acquire 39 million customers of T-Mobile back in 2012.

AT&T was willing to pay $39 Billion to acquire 39 million customers of T-Mobile back in 2012. Assuming that the payment was to be made just to acquire the customers of T-Mobile and the customers provided an average annual margin of $200, what minimum average retention rate will ensure that AT&T was not overpaying for the acquisition? Assume i = 12%.


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