What is the npv of the acquisition

Assignment Help Business Management
Reference no: EM132183665

Principal, Inc. is acquiring Secondary Companies for $29 million in cash. Principal has 2.5 million shares of stock outstanding at a market price of $30 a share. Secondary has 1.6 million shares of stock outstanding at a market price of $15 a share. Neither firm has any debt. The synergy gains of the acquisition is $4.5 million. What is the NPV of the acquisition?

Reference no: EM132183665

Questions Cloud

Inequality relate to family business management : How does gender inequality relate to family business management? Explain
Effectiveness and evaluating the risks of the strategy : Projected benefits by assessing the effectiveness and evaluating the risks of the strategy, analyzing and providing rationale for supporting the strategic
How each may be used to best serve a corporation : As a strategic leader, determine if you would feel ethically responsible for developing your firms human capital and state why.
Future generation of leaders : What impact do family, and culture have on the children, and future generation of leaders?
What is the npv of the acquisition : Neither firm has any debt. The synergy gains of the acquisition is $4.5 million. What is the NPV of the acquisition?
Social media presents to emergency managers : What are major challenges, but also potential benefits, that social media presents to emergency managers and PIOs, and how can those best be addressed?
Identify what the organization would look like : Incorporate internal and external factors, as well as specific examples of the structure required.
Breaking down the ansoff matrix : In the article, the author discussed four (4) different types of product-market strategies: Market penetration, Market development, Product development
What problem area would the internet intervention address : What problem area would the internet intervention address? Provide a general description of the proposed internet intervention.

Reviews

Write a Review

Business Management Questions & Answers

  Database for a new point of sale

Your team has been asked by a small retail client, SmallMart, to create the underlying database for a new point of sale (POS) system. You will be going through the Database Development Life Cycle, beginning with the analysis of requirements and e..

  Determine fundamental advantages of business outsourcing

determine the fundamental advantages and disadvantages of business outsourcing. Next, compare them to the main advantages and disadvantages of using domestic capabilities and resources in producing goods and services.

  Enter a negative numbe

A product sells for $83 per unit, and its variable costs per unit are $71. The fixed costs are $10,479. If the firm wants to earn $31,327 pretax income, how many units must be sold? Answer to nearest whole dollar without any commas or decimal points ..

  Most admired companies

In context to strategic management, search the Fortune "Most Admired Companies" 2010 and compare that list to the latest one of 2017.

  Organization utilizing forecasting

Utilizing a internet search engine, find a recent example of an organization utilizing forecasting to provide information on future demand.

  Final two tutorials of the session

Research Project (Group and Individual) Intent: 30% group presentation plus a 30% individual reportObjective(s):

  What is required to lead organizational change

Identify what would consider to be the 10 most critical learning points for leaders to know about what is required to lead organizational change efforts.

  Daniel consumes food and newspapers

Daniel consumes food and newspapers. Given that these are the only two goods he consumes, it is possible for both food and newspapers.

  What are the main characteristics of born global firms

What are the main characteristics of born global firms? What drivers and causes of globalization have allowed born global firms

  Prestigious strategic management consulting firm

a) have successfully undertaken a graduate class in the area of Strategic Management, and

  Diversity issues impact operations management

How does behaviour relate to diversity and does diversity issues impact operations management?

  Causes of the quality problems of the greasex line

1. What are the causes of the quality problems of the Greasex line? Disply your answer on a fishbone diagram. 2. What general steps should Hank follow in setting up a continuous improvement program for the company? What problems will he have to ov..

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!

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