(c) Shareholders of Sunrise Corporation has voted in favour of a buyout offer from Brightmoon...
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(c) Shareholders of Sunrise Corporation has voted in favour of a buyout offer from Brightmoon Enterprise for RM9.75 per share. Information about each firm is given below: Market price per share Share outstanding Earnings Sunrise Corporation RM16.25 140,000 RM947,000 Brightmoon Enterprise RM9.00 280,000 RM738,000 Required: i. Calculate the cost of target company. (3 marks) ji. Calculate the number of Sunrise's shares to exchange with Brightmoon (3 marks) iii. Calculate the share price of the merged firm. (6 marks) iv. Calculate the amount of synergy created by this merger. (3 marks) (c) Shareholders of Sunrise Corporation has voted in favour of a buyout offer from Brightmoon Enterprise for RM9.75 per share. Information about each firm is given below: Market price per share Share outstanding Earnings Sunrise Corporation RM16.25 140,000 RM947,000 Brightmoon Enterprise RM9.00 280,000 RM738,000 Required: i. Calculate the cost of target company. (3 marks) ji. Calculate the number of Sunrise's shares to exchange with Brightmoon (3 marks) iii. Calculate the share price of the merged firm. (6 marks) iv. Calculate the amount of synergy created by this merger
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