(b) Integrity Logistic Berhad attempts to penetrate a wide logistic market segment. Therefore, it proposes toacquire an access to large customer base. Integrity Logistic Berhad's offer involves a total amount of RM27million which is over the current market value of Infinity Logistic Berhad for synergetic reason. Integrity LogisticBerhad currently has a total number of 8.25 million shares outstanding valued at RM37.125 million, while InfinityLogistic Berhad has 5 million shares outstanding valued at RM23.25 million respectively.Based on the above information, calculate:i.Number of shares to be exchange for the merger of Infinity Logistic Berhad.ii.Share price of the merged firm.iii.The synergy value created by this merger.

The question is related to Merger and Acquisition. The target company is infinity logistic berhad.…

Answered: Integrity Logistic Berhad attempts to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You have been hired by Orange Brewery to help manage its captial structure. Currently, Orange has 671 million shares outstanding with a share price of $72.51, and $24.91 billion in debt. How much debt must Orange have if the expected future growth causes Orange to have 710 million shares outstanding trading for $87.19 per share. Assume that Orange maintains a constant debt-equity ratio. The amount of debt required for the new share price and shares outstanding will be___? billion. (Round to two decimal places.)
Trux Ltd is a listed company in the heavy vehicle industry. The market value of Trux Ltd's net debt is $800 million and the company has 250 million shares outstanding. Use this information to help answer the questions below. An analyst has collected the following information and wants to estimate the value of Trux's shares using the discounted free cash flow (FCF) model: Trux's FCF was $120 million in year 0 (historical FCF in the year just passed). Trux expects its FCF to grow by 10% per year for the next three years (in year 1, year 2 and year 3). Trux expects its FCF to grow by 4% per year indefinitely thereafter. The cost of equity is 15%. The cost of debt is 5%. The weighted average cost of capital is 12%. Using the discounted free cash flow model and the information above, what is the enterprise value of Trux? If a different analyst believes that the enterprise value of Trux Ltd is $2,500 million. According to this analyst, what will be the equity value per share of Trux Ltd?
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You are trying to estimate the intrinsic value of the shares of Flying High Ltd, a manufacturer of unmanned aerial vehicles, or drones. The company is headquartered in Melbourne, and sells its drones throughout Australia and New Zealand. It is a public company, but is not yet listed on the stock exchange. There are 30,000 shares outstanding. The most recent dividend was $2.6. The required rate of return for equity is 18.97%. Book value of equity, per share, as at 31 December 2021 was $25.97. You have come up with the following forecasts: - Earnings are expected to grow at 3.9% in perpetuity. - The firm's Return on Equity is expected to remain constant at 23.46%. What is the estimated value of the shares using a Residual Income Discount Model? a. $33.71 b. $32.51 c. $31.68 d. $32.00
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