Why is a large company with slow growth being the target

Assignment Help Financial Accounting

Reference no: EM133335762

A company PT A (Tbk) as a target will be acquired by another company, namely PT B (Tbk) as the holding company. The information of the two companies after the acquisition is as follows :

	PT A (Tbk)	PT B (Tbk)
FCF (Rp miliar)	15	6
WACC (%)	9%	5%
Growth (%)	3%	5%
Share price (Rp)	20.000	10.000
Shares outstanding (lembar)	8.000.000	1.000.000

a. You as a corporate finance consultant, try to calculate the synergies resulting from the acquisition, assuming that: (i) the sales value of the two companies is the same as the market value and (ii) both companies have stable growth in perpetuity.

b. Why is a large company with slow growth being the target of another company to acquire?

Reference no: EM133335762

Questions Cloud

Case study-online subject allocation system : In early days, subject scheduling was done manually which takes lot of time and patients. It also increases paper work, which is difficult to maintain.

How would you decide to respond to the customer : ENG 123 Don Mills Collegiate Institute how would you decide to respond to the customer who wrote review a) in the question above

What is the the old definition of assets from con 6 : What is the the old definition of assets from Con 6 and the new definition of assets in Con 8. Could you identify the most noteworthy changes in the definition.

Develop a total quality plan to be implemented : BUSINESS BOH 4M1 Ascension of Our Lord Secondary School develop a total quality plan to be implemented in the company. You must describe the main points

Why is a large company with slow growth being the target : You as a corporate finance consultant, try to calculate the synergies resulting from the acquisition, assuming that: (i) the sales value of the two companies

Propose hr leaders overcome these challenges : MGT 4110 Algonquin College Outline and discuss 5 challenges Currently facing the HR department that may hinder them from delivering strategic HRM.

What current issues and trends have promoted the need : HRM 510 Post University What is the value proposition of a D & I program? The business case will address these questions and present a framework for supporting

How much would lorne have at age 65 : The clawback starts at the minimum threshold of $81,761 to the maximum threshold of $134,626. How much will Lauren keep of her OAS when the clawback rate is 15%

Why did global green books publishing struggle : Why did Global Green Books Publishing struggle? What were the specific PM solutions that were introduced by Samantha that worked?

User Account

All Pages