Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. step by step no.44 question take over premium =

step by step no.44 question Take over premium = Dollar value Pre-merger...

70.2K

Verified Solution

Question

Finance

step by step no.44 question image
Take over premium = Dollar value Pre-merger value off = 14.751 M - 12M = 2.761M Please use the following information to answer the next TWO questions. Firm X is going to acquire Firm Y. The acquisition will be done via a share exchange, whereby Firm X will exchange two of its shares for every one of Firm Y's shares. Synergy is $1,500,000 in total. 75M 12M Firm X (Bidder) Firm Y (Target) Shares Outstanding 1,500,000 150,000 Price per Share $50 $80 Earnings 2,400,000 1,950,000 front ou 5x2 43. What is the takeover premium in dollars? (Tip: round the share price of the combined firm to two decimal places in calculating your answer.) A) $5,700,000 post-merger of x = 25M+12M +1.5M = 88.5M B) $1,500,000 C) $2,751,000 Total share = 15M+ (t) = 1.8M D) $2,500,000 E) $3,000,000 price = 885 = 49.17 Dollar value = 44.17X0.3M = 14.751M 44. For the NPV of the transaction to be zero for Firm X, how many shares would Firm X have to give to Firm Y? A) 242,170 B) 274,576 C) 240,000 D) 270,000 E) There is not enough information

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The potential energy of particle of mass m varies as E for OSIS1 U x...

Physics
Q

Sectional bending moment due to counting load MU = 525 kN Find the amount of reinforcement required....

Civil Engineering
Q

Please anwer the following questions: 1) If a customer had a complaint about an employees conduct...

General Management
Q

How does England treat special assessment debt compared to the U.S?

Accounting
Q

Short Answer each of the following in a sentence or brief paragraph 8 In pea...

Biology
Q

wo narrow slits are 0 27 mm apart The 5th order dark fringe is 0...

Physics
Q

1 Below is a graph of the function y f x 5 From your observations...

Calculus
Q

1.) Individuals A, B, and C form ABC Partnership. A contributes $180,000 in cash in...

Accounting
Q

Which of the following is a noncash investing and financing activity that should be disclosed...

Accounting
Q

Branif Leasing leases mechanical equipment to industrial consumers under sales-type leases that earn Branif a...

Accounting
Q

Sunny Corporation has collected the following data for one of its products: A. $5,070 unfavorable...

Accounting
Q

On Lemon Grass Department Stores' most recent balance sheet, the balance of its inventory at...

Accounting