For Question 1, 2, and 3, use the following information: 1.) Consider 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 6,500 1,500 Price per share $ 45 $ 15 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $10,600. If Firm T is willing to be acquired for $20 per share in cash, what is the NPV of the merger? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Please round to the nearest dollar and format as "X,XXX" 2.) Consider 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 6,500 1,500 Price per share $ 45 $ 15 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $10,600. What will the price per share of the merged firm be assuming the conditions in Question 1? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Please round to the nearest cent and format as "XX.XX" 3.) Consider 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 6,500 1,500 Price per share $ 45 $ 15 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $10,600. If Firm T is willing to be acquired for $20 per share in cash, what is the merger premium? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Please round to the nearest dollar and format as "X,XXX"
For Question 1, 2, and 3, use the following information:
1.) Consider 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 |
|
6,500 |
|
|
1,500 |
|
|
Price per share |
$ |
45 |
|
$ |
15 |
|
|
|
Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $10,600.
If Firm T is willing to be acquired for $20 per share in cash, what is the NPV of the merger? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Please round to the nearest dollar and format as "X,XXX"
2.)
Consider 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 |
|
6,500 |
|
|
1,500 |
|
|
Price per share |
$ |
45 |
|
$ |
15 |
|
|
|
Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $10,600.
What will the price per share of the merged firm be assuming the conditions in Question 1? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Please round to the nearest cent and format as "XX.XX"
3.)
Consider 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 |
|
6,500 |
|
|
1,500 |
|
|
Price per share |
$ |
45 |
|
$ |
15 |
|
|
|
Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $10,600.
If Firm T is willing to be acquired for $20 per share in cash, what is the merger premium? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Please round to the nearest dollar and format as "X,XXX"
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
