Chapter 26, Problem 7MC

Summary Introduction

Case summary:

Company H is a hardware chain, focused in “do it yourself” equipment rentals and materials. The one method to utilize excess fund is an acquisition. Company H’s boss and person Z decided to value the potential target of company L. For the purpose of this person Z conducted certain estimation regarding the company L.

To determine: Whether company H makes an offer for company L, if so compute the amount of offer per share.