Merger, Corporate Finance

Assignment Help:
The Chocolate ice cream company and the vanilla ice cream company have agreed to merge and form Fudge Swirl Consolidated.Both companies are exactly alike that are located in different towns. The end-of- period value of each firm is determined by the weather as shown below. There will be no synergy to the merger.
State Probability Value
Rainy 0.1 1 LAC
Warm 0.4 2 LAC
Hot 0.5 4 LAC
Each co. has o/s debt of 2lac.
What are the possible values of the merged company??

Related Discussions:- Merger

Capital rationing, reasons for capital rationing in public sector

reasons for capital rationing in public sector

Characteristic of an efficient market, Question 1: (a) Explain and com...

Question 1: (a) Explain and comment on the various rationales presented to support the combination of two companies in a merger or takeover. (b) What are two theoretical r

INVESTMENT DECISION, You are a ceo of a sotware firm that has limited acces...

You are a ceo of a sotware firm that has limited access to debt equity markets. The average return on last year projects is 28 % . and cost of capital is 12%. would npv pr Irr be

Establishing the scale and cost of phoenix activity, Q. Establishing the sc...

Q. Establishing the scale and cost of phoenix activity? In 1996, the Australian Securities Commission (ASC, now ASIC) quantified the annual loss to Australian businesses due to

Analysis, Ask question #Minimum 100 words accepted FIN 610 Milestone One Gu...

Ask question #Minimum 100 words accepted FIN 610 Milestone One Guidelines and Rubric Overview: For this first milestone, which is due in Module Three, you will describe each of the

Calculate the expected effective real rate of return, Question : (a) D...

Question : (a) Describe how cash flows are exchanged in an "interest rate swap". (b) A government issues a 90-day Treasury Bill at a simple rate of discount of 5% per annu

Determinants of growth of a company in financial terms, Determinants of gro...

Determinants of growth - Profit Margin Dividend Policy   Financial Policy Total asset Turnover

Difference between transaction and translation risk, Question: You have...

Question: You have been appointed as the treasurer of Dockers International, an automobile firm with many subsidiaries abroad. The management of Dockers International is relati

Efficiency, differentiate between pricing efficiency and allocative efficie...

differentiate between pricing efficiency and allocative efficiency

Write Your Message!

Captcha
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