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School
Villanova University *
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Course
430
Subject
Finance
Date
Nov 24, 2024
Type
png
Pages
1
Uploaded by ConstableEel2755
What
is
correct
about
the
acquisition
price:
Cj.
)
it
is
the
price
that
will
be
paid
by
the
acquiring
firm
for
each
of
the
target
firm's
shares
l/
.
)
o)
In
a
tender
offer,
it
is
the
price
at
which
the
acquiring
firm
receives
enough
shares
to
gain
control
of
the
target
firm.
s
'\)
d)
All
of
the
above
are
correct
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Related Questions
Assume the acquisition is based on market values with a cash payment:
Calculate the combined value of the proposed acquisition.
Determine the net present value of the proposal.
Calculate the acquisition premium.
Calculate the post-acquisition market price of the share.
Determine the post-acquisition increase/decrease price of the share.
Assume the acquisition is based on earnings per share:
Determine the exchange ratio based on earnings per share.
Compute the total number of shares in the proposed acquisition.
Calculate the post-acquisition earnings per share.
Calculate the benefits, if any, to the two parties.
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The best valuation method(s) for a publicly-traded preference share is :a. Relative valuation and contingent claim valuation b.Intrinsic valuation, relative valuation and contingent claim valuation c.Intrinsic valuation only d.Intrinsic valuation and relative valuation
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Which of the following would NOT be included in the acquisition cost?A. Share issue costs.B. Fair value of any shares issued.C. Fair value of contingent consideration.D. Fair value of assets transferred.
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The most common methods for repurchasing shares is structural programs, such as accelerated share repurchase (ASR) programs
Question options:
a) True
b) False
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GW Underwriters retains the difference between its buying price and its offering price on new securities. What is this amount called?
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a.
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b.
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d.
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direct and indiırect acquisition costs
O direct acquisition costs
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