... paid per customers but this cost is offset by the anticipated added value of offering expanded bundled services to 522,000 customers. Additionally by having a superior market share in focused geographic areas COX will continue to acquire new customers based on natural growth rates, which are anticipated to be as high as 15% for some services. The question arises as to whether addition of Gannett to Cox's already aggressive acquisition plan will upset target leverage ration of 5, this will not be a significant problem if COX uses a combination of debt, equity and hybrid security issue (FELINE income PRIDES). In conclusion, does the acquisition make sense at $2.7 billion? To determine if the $2.7 billion makes sense we add up the cash flows (EBITDA) of Gannett for the next 5 years and multiply this figure by the annuity factor of 4.1002. The calculations used to determine the annuity factor ...

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