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

Debt finance, Differences btn debt finance and preferance share capital

Differences btn debt finance and preferance share capital

Calculate the cost of capital for the project, Calculate the cost of capita...

Calculate the cost of capital for the project? (a) Describe how the weighted cost of capital for an MNC can be calculated? (b) Assume that a foreign project has a beta of 0.

Capital structure, What the implications of the pecking order theory?

What the implications of the pecking order theory?

Economic value added-cost of equity , Course assessment: Company direct...

Course assessment: Company directors often believe that the stock market fails "correctly" to value the firms they manage, while investors are often alarmed by the volatility i

Bond valuation, An investor buys a French government, 10-year bond, paying ...

An investor buys a French government, 10-year bond, paying annual coupon of 4.5%. Face value = 1000. The investor is unsure of his investment horizon and considers 5 horizons: 5, 6

Find net payment of the company, a)    Black Corp. currently has $65 millio...

a)    Black Corp. currently has $65 million worth of floating rate debts carried at an average rate of LIBOR + 2.6% that it would like to hedge against rising interest rates withou

Touring Enterprises, As the company''s sales and earnings increased, so did...

As the company''s sales and earnings increased, so did the demand for capital. The firm''s needs included inventory as well as additional space to house the inventory, computer fac

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

Finance, Source of short term finance

Source of short term finance

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