The writer is very fast, professional and responded to the review request fast also. Thank you.
For the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding.
Firm B Firm T
Shares outstanding 6,600 2,500
Price per share $47 $21
Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $9,900.
a. If Firm T is willing to be acquired for $23 per share in cash, what is the NPV of the merger? (
NPV $ _________
b. What will the price per share of the merged firm be assuming the conditions in (a)? (
Share price $ _________
c. If Firm T is willing to be acquired for $23 per share in cash, what is the merger premium? (Not round intermediate calculations.)
Merger premium $ ____
d. Let say Firm T is agreeable to a merger by an exchange of stock. If B offers one of its shares for every two of T’s shares, what will the price per share of the merged firm be?
Price per share $ _____
e. What is the NPV of the merger assuming the conditions in (d)?
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more