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Question: Novell, which had a market value of equity of $2 billion and a beta of 1.50, announced that it was acquiring WordPerfect, which had a market value of equity of $ 1 billion, and a beta of 1.30. Neither firm had any debt in its financial structure at the time of the acquisition, and the corporate tax rate was 40%.
a. Estimate the beta for Novell after the acquisition, assuming that the entire acquisition was financed with equity.
b. Assume that Novell had to borrow the $ 1 billion to acquire WordPerfect. Estimate the beta after the acquisition.
What is the beta of a portfolio if funds are allocated equally between two securities listed in London Stock Exchange (LSE) and Shanghai Stock Exchange (SSE)?
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Its expenses included depreciation of $55,000, interest expenses of $40,000 and deferred taxes of $20,000. The company also purchased two new fresh water fishing boats for $40,000 ($20,000) each. What is Ship-to Shore's after-tax cash flow for las..
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