kindly provide a detailed solutions 1) Nordland plc is considering making an offer for...
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1) Nordland plc is considering making an offer for the equity of Sudland plc. Information about both companies is shown in the table below. Both are all equity financed firms. Sudland plc Nordland plc 3,000,000 Number of shares 485,000 Share Price 9.00 7.50 Nordland will make either a Cash or a Share offer. The Cash offer would be 8.50 per share in Sudland The Share offer would be share in Nordland for each 1.1 shares in Sudland. Nordland expects that if Sudland is acquired, synergies with a present value of 530,000 could be achieved. Required: a) Under the cash offer, what is the NPV of the offer for shareholders in Nordland Plc.? (10 Marks) b) Under the share offer, what is the NPV of the offer for shareholders in Nordland Plc
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