What is the value of the combined firm

Assignment Help Finance Basics
Reference no: EM131941135

Your firm is currently valued at $500,000. The firm you are looking to acquire has a value of $200,000, has $25,000 shares of stock outstanding. In order to make this acquisition you plan to offer target shareholders $8.25 per share. The present value of synergies is $36,000. What is the value of the combined firm?

Reference no: EM131941135

Questions Cloud

What is the net present value of upgrading : If the discount rate is 12.4% and the equipment is expected to operate indefinitely, what is the net present value of upgrading one unit of equipment?
How does cellular authentication work : How does cellular authentication work? Briefly explain the process. Describe GSM security goals and how does SMS meet those goals. Be specific.
Mitigating the free-cash-flow problem : Dividends are ineffective in mitigating the free-cash-flow problem because paying dividends is not mandatory and hence managers always
What is the company cost of debt : A company has a risk free rate of 3% and a risk premium of 6%. Its tax rate is 35%. What is the company's cost of debt?
What is the value of the combined firm : In order to make this acquisition you plan to offer target shareholders $8.25 per share. The present value of synergies is $36,000.
Write a reflective piece discussing your own values : Based on the essay, write a reflective piece discussing your own values and how they affect your behaviour and/or your understanding of other people's behaviour
Capital structure policies with a fixed debt-to-value ratio : Assume that debt betas are zero and that both companies pursue capital structure policies with a fixed debt-to-value ratio.
Describing the features functions advantages and situations : Describing the features, functions, advantages, disadvantages, and situations in which one would use Microsoft Visio, Access, OneNote , SharePoint, and Project.
Example of matching currency cash flows : Explain how matching currency cash flows can offset operating exposure. Give an example of matching currency cash flows.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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