Does this merger create synergy

Assignment Help Business Management
Reference no: EM133306394

Question

Telecom BC Inc. telecommunication company is looking to acquire Beat Plus Inc. heart rate check app. After-tax cash flows of Telecom BC are $49mln while for Beat Plus - $6mln. Both firms are all-equity firms. The rate of return for both firms is 14%. After the acquisition, the cash flows of Telecom BC Inc will become. $57mln. Does this merger create synergy? If yes, what is this synergy in $?

Reference no: EM133306394

Questions Cloud

Company accounting policy : Discuss the factors that accountants should consider when setting up company accounting policy relating to PPE.
Is wurstkuche concept clear cut or ambiguous : Is Wurstkuche's concept clear-cut or ambiguous?Do you believe there is a market to support the concept throughout cities in California?
Describe how you would approach building : Describe how you would approach building and explaining when you have full data file that you have to exclude sections of the file for specifics reasons
Why it is reflects research of current trends : The association has asked for a one-page outline that includes what you'll present, why it's relevant/topical and reflects research of current trends
Does this merger create synergy : The cash flows of Telecom BC Inc will become. $57mln. Does this merger create synergy? If yes, what is this synergy in $?
Discuss five ethical frameworks that can be applied : Using court cases and examples discuss five ethical frameworks that can be applied to the scenario presented. Include policies and practices which could ensure
Company destroying or creating value : What is the value of XYZ Corporation and its WACC? Company destroying or creating value?
Relationship between virgil tibbs and chief gillespie : I need resources for the evolving relationship between Virgil Tibbs and Chief Gillespie from the film "In the Heat of the Night" (1967) directed by Norman Jewis
Capital asset pricing model influence financial decisions : How does the Capital asset pricing model (CAPM) influence financial decisions regarding risk and return?

Reviews

Write a Review

Business Management Questions & Answers

  Market development versus product development

If a company has $1 million to spend on a new strategy and is considering market development versus product development

  Maintaining long-term professional relationships

One of the most important aspects of negotiating with someone or a business that you have a long-term and on-going relationship with is maintaining that relationship post-negotiation. Consider the following negotiation:

  Accounting for employee motivation

Why is accounting for employee motivation such an important aspect of designing today's jobs?

  Different types of safeguards for data

Determine why information security is so important in healthcare by analyzing at least two different types of safeguards for data and elaborate on what standards are looked at for each.

  Does the daughter have any rights in the contract between

Chang, a ?orist, contracted with Torres to provide delivery services in the local community. Torres discovered that his vehicles did not have the equipment to handle the work well, so he asked Chang if another delivery service, Rush Truk, would be ac..

  Chrysler corporation from bankruptcy

In the 1980s, Lee Iacocca became a legend by rescuing Chrysler Corporation from bankruptcy. Today Chrysler faces another challenge: surviving the heated

  Attitudes-self-concept and behaviour

Scenario: You are a student at College and you are in the process of improving your knowledge and expertise as a student that will help you to become a Business

  What do you like most and least about your job and why

What do you like most and least about your job? Why? What motivates you at your job? What skills do you need in your job? How much education does your job require?

  Create a program that determines the number of days

A weather station provides a couple of daily temperatures (maximum, minimum) (it is not possible for either or both temperatures to be 9 degrees).

  Calculate the standard deviation of tank bank

Calculate the standard deviation of Tank Bank's asset allocation proportions relative to the national benchmark.

  Impact on the success of a business

Only one of the business dimensions have greater impact on the success of a business. Why or why not?

  Determine when interviewees are telling the truth

During a job interview, the interviewee is trying to deceive the interviewer if the hand is often used to cover the mouth, and the person talks

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd