None In July 2007, News Corporation entered into an agreement to purchase all of the outstanding shares of Dow Jones and Company for$63 per share. Immediately prior to the News Corporation bid, the shares of Dow Jones traded at $38 per share. The number ofoutstanding shares at the time of the announcement was 83 million. The book value of interest-bearing liabilities on the balance sheetof Dow Jones was $1.48 billion.a. Estimate the cost of this acquisition to the shareholders of News Corporationb. What value did News Corporation place on the control of Dow Jones and Company?Note: For all requirements, enter your answers in billions rounded to 2 decimal places.Estimated cost of the acquisitionValue of controlbillionbillion

aCost of acquisition = (Purchase price * Shares outstanding) + LiabilitiesCost of acquisition = (63…

Answered: In July 2007, News Corporation entered…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 7P

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