Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
M&A
E-III Corp. is investigating the possible acquisition of Silicon Inc. Assume that both firms have no debt outstanding.
E-III Corp. Silicon Inc.
Pre-announcement stock price $15.00 $12.00
Number of shares outstanding 8 million 6 million
The synergy from the acquisition is estimated to be $22 million. Both firms agree that Silicon Inc. will be acquired for $13.50 per share. They are negotiating methods of payment: an all-cash offer, a stock exchange offer, as well as a combination of cash and stock exchange offer ($7.5 cash per share of Silicon plus 0.4 shares of E-III per share of Silicon). Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.
Draw NPV profiles for the two replacement presses on the same set of axes, and discuss conflicting rankings of the two presses, if any, resulting from use of NPV and IRR decision techniques.
Management estimates that the beta of the debt is 0.3 and the beta of the total assets is 0.5. What is the beta of XYZ Company"s equity?
How does the relative tax advantage change if the company decides to pay out all equity income as cash dividends that are taxed at 15%?
You are attempting to develop a break-even for a capitation contract with a major HMO. Your hospital has agreed to provide all inpatient hospital services for 10,000 covered lives.
How much will the short fall amount to at the beginning of the retirement period and what lump sum will she need at the beginning of the retirement period
Assuming that Valley Proteins has a tax rate of 30 percent and that their opportunity cost of capital (required return) is 10 percent, determine whether the firm should purchase the centrifuge from Harburg-Freudenberger or the Bird Machine Co. cent..
Determine which type of adjusting entry is required in every situation, at December 31, 2008.
Suppose you own a portfolio that has 35 percent invested in asset A, and 65 percent in asset B. Asset A's standard deviation is 12 percent and asset B's standard deviation is 18 percent.
What must the average beta of the new stocks added to the portfolio be to achieve the desired required rate of return? Attach your Excel file showing your calculations.
Heaton Corporation reported retained earnings of 675,000 dollar on its balance sheet, & it reported that it had 172,500 dollar of net income during the year. On previous balance sheet corporation had reported $555,000 of retained earnings.
How much overall risk is there in this firm? Where is this risk coming from? How is the risk profile changing?
Calculate the expected EPS fo both financing plans - What factors should the company consider in deciding which financing plan to adopt?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd