Reference no: EM132554950
The following information gives the information on the 2 companies for the year just ended:
Sports Unlimite (SU)
Net Earnings = $5,000,000
Number of shares = 3,000,000
Price = $18/share
Fast Track (FT)
Net Earnings = $1,500,000
Number of shares = 1,500,000
Price = $15/share
Both SU and FT are in the sporting goods business. SU is thinking of acquiring FT with a mix offer of both cash and share swap.
SU Manager estimates that, if the acquisition goes ahead, then the combined company's net earnings will grow by 6% instead of 2% if the companies are to operate independently and such growth rates are perpetual. SU has a cost of capital of 12%.
SU would like to make an offer not to exceed 65% of the total synergy obtained as a result of the acquisition.
What is the total synergy generated in PV terms?
What is the amount of premium offered to FT expressed as a percentage?
If the offer is made with 40% cash and 60% share swap, what is the value of the share swap?
|
How principalism applied according to christian worldview
: This part includes questions, to be answered in a total of 500 words, that describe how principalism would be applied according to the Christian worldview.
|
|
PS501 Foundations of Professional Psychology Assignment
: PS501 Foundations of Professional Psychology Assignment Help and Solution, Purdue University Global - Assessment Writing Service
|
|
What is the effect on book value per ordinary shares
: If you sell a segment of the business for 30 mil with a book value of 27 mil . What is the effect on book value per ordinary shares : increase / decrease
|
|
Describe the different legacies to an artist
: "Charlie Parker is arguably the greatest alto saxophone player in the history of jazz. Not only did he change the way the instrument could be played.
|
|
What is the total synergy generated in pv terms
: What is the amount of premium offered to FT expressed as a percentage?
|
|
Identify strategies to prevent future outbreaks
: Form a committee of not more than 8 members, including you (consider the group as one person, the lead epidemiologist), of internal and external stakeholders.
|
|
How to calculate journal entries and post notes payable
: How to calculate journal entries & post notes payable, interst payable & interest expense? Sept 1 Issued a 14,400 note to Pipen to purchase inventory.
|
|
What is the value of the synergy in pv terms
: Given the following information: Firm B (Bidder) number of shares = 8,000
|
|
How would the accounting changes impact balance sheet
: How would the accounting changes impact Balance Sheet and Income Statement items such as assets, liabilities, revenue and expenses?
|