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!
Donovan Inc. is considering an acquisition of Gilhooly Corp. Donovan has 3,809,153 shares outstanding selling for $41.63. Gilhooly has 1,935,728 shares outstanding selling for $26.71. What are the market values of both firms? In a stock-for-stock offer how many shares of Donovan stock will each Gilhooly equity holder receive for his share (if they allocate purely on the basis of the current prices)? If there are no synergies, what will be the value of the combined firm? How many shares will be outstanding after the acquisition? What will be the value of each share? What portion of the stock will the old Donovan shareholders hold in the firm after the acquisition? Next, assume that Donovan has adequate excess-cash-on-hand to pay each shareholder of Gilhooly $11.25. If they wish to make an acquisition based on a combination of stock and cash, how many shares of Donovan stock must each Gilhooly equity holder be given to buy-out the remainder of his share beyond the $11.25? If there are no synergies, what will be the value of the combined firm (recall that each shareholder of the Gilhooly stock is being given $11.25, so the value of the firm will decline accordingly)? How many shares will be outstanding after the acquisition? What will be the value of each share? What portion of the stock will the old Donovan shareholders own in the firm after the acquisition? Finally, presume that the merger will create synergies that have a present value of $17,000,000. Assume the two firms execute a straight stock-for-stock offer at the exchange ratio in the first example above. What will be the firm value, the number of outstanding shares, and the share price after the acquisition?
A Telecommunications has a target capital structure that consists of 60 percent debt and 40 percent equity. The company anticipates that its capital budget for the upcoming year will be $4,000,000. If Axel reports net income of $3,000,000 and it foll..
Bruce & Co. expects its EBIT to be $83,000 every year forever. The company can borrow at 11 percent. The company currently has no debt, its cost of equity is 15 percent, and the tax rate is 35 percent. The company borrows $144,000 and uses the procee..
Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $167,000 received two years from today. Subsequent ..
What type of transaction should you execute to achieve the maximum benefit? Demonstrate that your strategy is correct by constructing a payoff table showing the outcomes of expiration.
Fyre, Inc., has a target debt−equity ratio of 1.70. Its WACC is 8.9 percent, and the tax rate is 35 percent. a. If the company’s cost of equity is 13 percent, what is its pretax cost of debt? (Do not round intermediate calculations.
Why may a bond's price change simply because of the passage of time?.- What is the difference between a bond's current yield and its yield to maturity?
Consider the production cost information for Mama Italiano Sauce given below: Mama Italiano Sauce Production Cost Budget April 2008 Production - Jars of sauce 20,000 Ingredient cost (variable) $16,000 Labor cost (variable) 9,000 Rent (fixed). The com..
please show formulas.a balance sheet shows a total of noncallable 45 million. long-termdebt with a coupon rate of 7.00
Trevi Corporation recently reported an EBITDA of $32,800 and $9,500 of net income. The company has $6,800 interest expense, and the corporate tax rate is 35 percent. What was the company’s depreciation and amortization expense?
Greiner, Inc., a calendar year S Corporation, holds no AEP. During the year, Chad, an individual Greiner shareholder, receives a cash distribution of $30,000 from the entity. Chad's basis in his stock is $25,000. Compute Chad's ordinary income and ca..
Tri-coat Paints has a current market value of $35 per share with earnings of $2.05. What is the present value of its growth opportunities (PVGO) if the required return is 6%?
An engineer plans to borrow $25000 to open his own consulting business. He must repay $500 a month for 5 years. What is the nominal annual interest rate (compounded annually)?
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