RiverRocks (whose WACC is 12.5%) is considering an acquisition of Raft Adventures (whose WACC is 15.9%). What is the appropriate discount rate for RiverRocks to use to evaluate the acquisition? Why? The appropriate discount rate for RiverRocks to use to evaluate the acquisition is %. (Round to one decimal place.)

10.) RiverRocks (whose WACC is 12.6%) is considering an acquisition of Raft Adventures (whose WACC is 15.2%). What is the appropriate discount rate for RiverRocks to use to evaluate the acquisition? Why? The appropriate discount rate for RiverRocks to use to evaluate the acquisition is ___%. (Round to one decimal place.) Why?  (Select the best choice below.)

st 12 n3 K RiverRacks (where WACC is 11.4%) is considering an acquisition of Ratt Adventures (whose WACC is 15.1%) What is the appropriate discount rate RiverRacks to use to evaluate the acquisition? Why? The appropriate discount rate for RiverRocks to use to evaluate the acquisition is % (Round to one decimal place.) Why? (Select the best choice below) OA. Rat Adventures WACC is the most appropriate discount rate to account for the rok of Raft Adventures cash flows OB RverRacks WACC is the most appropriate discount rate to account for Rat Adventures cash flows OC. An average WACC from RiverRocks and Rat Adventures will best account for the risk of Raft Adventures cash flows. OD. The risk-tee rate will best account for the risk of Raft Adventures' cash flows since RiverRocks will pay cash for the transaction

Required: i)Determine the gain for World Cruise Bhd. when it acquires Sunrise Cruise Bhd. (ii) World Cruise Bhd. is proposing to finance by cash the deal to purchase all of Sunrise Cruise Bhd.’s issued shares and is offering a premium of 25% over the market price of Sunrise Cruise Bhd.’s shares.Calculate the cost of acquisition of Sunrise Cruise Bhd. (iii) Suggest what should be recommended by Jack Pang to the Board of Directors on the proposed acquisition of Sunrise Cruise Bhd. and why Sunrise’s shareholders should accept the offer.

If Genie went ahead with the acquisition of Aladdin, what is the total value of the acquisition? ( What is the maximum price per share that Genie should be willing to pay for this acquisition?   3)If Genie decided to go ahead with the cash acquisition, what will be its price per share after the acquisition?

Reck Company is considering the acquisition of Clock Inc.  To assess the amount it might     be   willing to pay, Reck makes the following computations and assumptions.A.  Clock, Inc. has identifiable assets with a total fair value of OMR 9,000,000 and liabilities of OMR 6,500,000.  The assets include office equipment with a fair value approximating book value, buildings with a fair value 30% higher than book value, and land with a fair value 50% higher than book value.  The remaining lives of the assets are deemed to be approximately equal to those used by Clock Inc.B.  Clock Inc.'s pretax incomes for the years 2018 through 2020 were OMR 580,000, OMR 420,000, and OMR 350,000, respectively.  Reck believes that an average of these earnings represents a fair estimate of annual earnings for the indefinite future.  However, it may need to consider adjustments for the following items included in pretax earnings:Depreciation on Buildings (each year)           380,000Depreciation on Equipment…

Moon Company is contemplating the acquisition of Yount, Inc., on January 1, 2015. If Moon acquires Yount, it will pay $730,000 in cash to Yount and acquisition costs of $20,000. The January 1, 2015, balance sheet of Yount, Inc., is anticipated to be as attached:Fair values agree with book values except for the inventory and the depreciable fixed assets, which have fair values of $70,000 and $400,000, respectively. Your projections of the combined operations for 2015 are as follows: Combined sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $200,000 Combined cost of goods sold, including Yount’s beginning inventory, at book value, which will be sold in 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000 Other expenses not including depreciation of Yount assets . . . . . . . . . . . . . . . . . . . . . . . . 25,000Depreciation on Yount fixed assets is…

Required: Should Gwapo Co. proceed with the acquisition of Beauty Co.?

Carla Vista Company is considering the acquisition of Kingbird, Inc. To assess the amount it might be willing to pay, Carla Vista makes the following computations and assumptions. A. B. C. Kingbird, Inc. has identifiable assets with a total fair value of $6,016,000 and liabilities of $3,719,000. The assets include office equipment with a fair value approximating book value, buildings with a fair value 25% higher than book value, and land with a fair value 50% higher than book value. The remaining lives of the assets are deemed to be approximately equal to those used by Kingbird, Inc. Kingbird, Inc.'s pretax incomes for the years 2020 through 2022 were $472,100, $573,300, and $372,700, respectively. Carla Vista believes that an average of these earnings represents a fair estimate of annual earnings for the indefinite future. However, it may need to consider adjustments for the following items included in pretax earnings: Depreciation on Buildings (each year) Depreciation on Equipment…

Mike Limited, a software development company is contemplating the acquisition of Ross Limited by means of a shareissue. The combination of the two firms' operations will result in economies of scale and the additional value generatedis estimated to be R24 million. It was agreed that the purchase consideration for the acquisition should be based on anexchange of 1.4 shares of Ross Limited for each share of Mike Limited.The key acquisition data provided for this acquisition is as follows:Mike Limited possesses 18.8 million shares with a market price of R32 per share and earnings after tax of R26 million,whereas Ross Limited has 13.2 million shares with a market price of R28 per share and earnings after tax of R19 million.Required:1.1 Calculate the combined value of the proposed acquisition. (3 marks)1.2 Calculate the total number of shares in the proposed acquisition. (2 marks)1.3 Determine the proposed post-acquisition market price per share. (2 decimal places) (2 marks)1.4 Will the…