calculate the merger premium, Basic Statistics

Consider the following pre-merger information concerning two firms, Mokhaba Manufacturers and

Mabhida Merchants:

 Data                                                           Mokhaba     Mabhida

Shares issued                               1 600             1 000

Price per share                               R35                R25

Mokhaba wishes to acquire Mabhida and believes that there will be synergistic benefits of R6 000.

Note: Both firms have no debt.

1. If Mabhida is willing to be acquired at R30 per share, what is the NPV of the merger?

2. Calculate the PPS of the merged company.

3. Calculate the merger premium

Posted Date: 4/6/2013 5:06:21 AM | Location : United States







Related Discussions:- calculate the merger premium, Assignment Help, Ask Question on calculate the merger premium, Get Answer, Expert's Help, calculate the merger premium Discussions

Write discussion on calculate the merger premium
Your posts are moderated
Related Questions

1. Generate 1000 samples for each of the following discrete random variables: (a). Binomial distribution with n=40, p=0.7, and distr. with n=50, p=0.5 (b). Geometric distribu

A car moves with constant velocity along a straight road. Its position is x1 = 0m at t1 = 0 seconds and is x2 = 56 m at t2 = 5.0 s. what is the cars position at t=2.5 seconds and

Transition towards IFRS Over the last few years, there has been a tremendous change in the world's capital markets. There has thus been a shift away from the local financial re

what are the objective and importance of cost accounting and managerial decision making.

Budgeted accounts Accounts that are theme to the misappropriation or sometimes to appropriation and/or allotment process. Refer to APPROPRIATION and portion.

Cash flow analysis In financial sales, an income report, also known as report of money runs or funds circulation report is a financial report that shows how changes in stability

What are the components of time series? Bring out the significance of moving average in analysing a time series and point out its limitations

Definition and examples of asset and liabilities

According to a weather forecaster's subjective probability assessments, the probability of record-breaking rain during this year in Jamshedpur is 0.01 . However, if Ranchi has a r