What is the value of company after the merger

Assignment Help Financial Management

Reference no: EM131044773

Two firms merge (companies A & B) and company A is going to assume all the assets and liabilities of the two companies. Current market value of company A is $150 million and current market value of company B is $87 million. The merger is predicted to create $17 million in synergies. If company A needs to pay $98 million to the shareholders of company B, what is the value of company A after the merger?

Reference no: EM131044773

Questions Cloud

Approximate probability that the average song : It is known that song length is not normally distributed. Suppose a sample of 25 songs is taken from the population. What is the approximate probability that the average song length will last more than 3.5 minutes? Round to the nearest thousandth.

Diversified manufacturing company headquartered : Cinnamon, Inc. is a diversified manufacturing company headquartered in the United Kingdom. It complies with IFRS. In 2009, Cinnamon held a 19 percent passive equity ownership interest in Cambridge Processing that was classified as available-for-sa..

Approximate probability that the average song length : It is known that song length is not normally distributed. Suppose a sample of 25 songs is taken from the population. What is the approximate probability that the average song length will last more than 5.25 minutes? Round to the nearest thousandth..

Identify policies at the federal state and local levels : Identify policies at the federal, state, and local levels relating to the provision of health care and patient rights that played the following roles in the case.

What is the value of company after the merger : Two firms merge (companies A & B) and company A is going to assume all the assets and liabilities of the two companies. Current market value of company A is $150 million and current market value of company B is $87 million. The merger is predicted to..

Write a paper on given topic - government : GOVERNMENT - Of the government and other economic/ business institutions in the UK, which three are most important to businesses and why

What is the probability that alvin wins this game : Simon's numbers are 4 and 5, and Theodore's number is 6. Suppose that Theodore goes rst, Simon goes second, and Alvin goes last. Also note that if no player gets one of his numbers on the rst round, then they keep rolling the die until there is a..

What is the new price of the bond if interest rates : You find a bond with 15 years until maturity that has a coupon rate of 8.0 percent and a yield to maturity of 7.1 percent. Suppose the yield to maturity on the bond increases by .25 percent. 1. What is the new price of the bond using duration? What i..

Estimate the proportion of patients : A statistician for a pharmaceutical company wants to estimate the proportion of patients who experience dizziness as a side effect by taking a sample of patients. How large of a sample size is needed to estimate this proportion to within 2% at the..

User Account

All Pages