User Account

All Pages

What is the npv of the acquirer

Assignment Help Accounting Basics
Reference no: EM133176990

Question - Company A has a market value of $200 million and two million shares outstanding. Company B has a market value of $50 million and one million shares outstanding. Company A is deciding to acquire Company B. The managers of Company A have determined that the value of the combined firms will be $300 million. Company A expects to pay a $30 million premium for Company B. Assume that capital markets are efficient and that there is a 100 percent probability the deal will be closed. What is the NPV of the acquirer (Company A)?

a. $30 million

b. $20 million

c. $300 million

d. $100 million

d. $50 million

Reference no: EM133176990

Questions Cloud

Calculate the mass of the structure : Perform a computer model of structure using FEA software and compare its results against question - derive the basic matrices and implement a Hand calculation
Explain the negative customer experience : Share a positive or negative customer experience that you have had with a small business or a local franchise of a larger business. Apply what you learned from
Target for greenpeace detox campaign : What characteristics made Levi a good Target for Greenpeace's DeTox Campaign?
How would you bin a data point : It is mentioned that binning the data would allow easy identification of outliers, invalid and missing values. I have a couple of questions.
What is the npv of the acquirer : Company B has a market value of $50 million and one million shares outstanding. What is the NPV of the acquirer
How training and development is influenced : Consider how training and development is influenced by, and in turn can influence, other human resource functions.
Case-mehdi department store : Hassan Moe, the Manager at Mehdi's, understands the importance of a department store's sales force, especially when it comes to the sales force of a premiere, u
Talent management planning process : Describe opportunities for improvement in the talent management planning process.
What are the decision variables : Expansion Draft sells for $20 per barrel, while Burning River sells for $8 per barrel. What are the decision variables? What is the objective function

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd