How big was the target firm compared to the acquirer

Assignment Help Corporate Finance
Reference no: EM131431445

Assignment: Intermediate Corporate Finance

Instructor: Sungjoung Kwon

Assignment: Choose a merger between two PUBLICLY-TRADED COMPANIES. Address the following questions. The memo should be approximately two- three pages, with relevant tables and figures attached at the back. Within that limit, you should include the following:

1. Identity of target firm and acquirer firm. What industry is each firm in?

2. What was the market capitalization of each firm, prior to the merger announcement?

a. How big was the target firm, compared to the acquirer?

3. Stock prices of target firm, starting 3 months prior to merger and continuing through merger completion. Please clearly mark the merger announcement date on the graph.

a. What was the return on the target firm's stock, at the time of the announcement?

4. Stock prices of acquirer firm, starting 3 months prior to merger and continuing through the present time. Please clearly mark the merger announcement date and the merger completion date on the graph.

a. What was the return on the acquirer firm's stock, at the time of the announcement?

5. Was the merger paid for with cash or stock - please specify the terms. Were the terms of the merger revised after the initial announcement? In other words, in some cases the acquirer increases its offer price - please note whether or not this happened. If it did, provide the relevant details.

6. Did the target firm initially agree to the merger? If not, what happened?

7. What were the driving factors behind this merger? Please comment critically (we discussed in class good and bad reasons for merging) - do you believe that this is a good merger? Why or why not?

8. Please provide 3 facts about this merger that you found particularly interesting.

The memo will be due March 13th, 2017 (Monday) at the beginning of class. Report should be submitted in hardcopy. You don't need to prepare in-class presentation (there will be no class presentation). This assignment should be done in groups. You have the option to pick your own groups. They will consist of approximately 4 students.

Reference no: EM131431445

Questions Cloud

Draw the characteristic lines of all of the companies : For each firm use regression analysis to calculate the firm's beta. (b) Draw the characteristic lines of all of the above companies. Calculate the beta of a portfolio consisting of 20% Gateway.
Discuss the process that robert should use : FINA 6001 Managing Finance Assignment. Discuss the process that Robert should use to determine which payment option he prefers. Ignore all taxes and assume that Jesse will live for at least 40 more years
What is meant by nonforfeiture clauses : What is meant by Nonforfeiture clauses? Why, mathematically, do some life insurance policies have nonforfeiture options (what feature of a policy allows for nonforfeiture options)? Provide three examples of nonforfeiture options.
How financial management techniques can be used : Using each of the four categories of risk, develop an analysis of how financial management techniques or policies can be used to mitigate each of the risks.
How big was the target firm compared to the acquirer : FIN 302- Identity of target firm and acquirer firm. What industry is each firm in? What was the market capitalization of each firm, prior to the merger announcement? How big was the target firm, compared to the acquirer?
Calculate the unsystematic risk and firm specific risk : FINA 6001 Managing Finance Assignment. Calculate the daily market return over the last five years from the daily prices, calculate the monthly returns from the daily returns, and calculate the yearly returns from the monthly returns. Calculate the ..
List the make and model of desired hardware devices : Choose the hardware and software that will provide your employees with the ability to stay connected to internal company data, communicate and collaborate with coworkers, and process data and sales information using wording, processing, and spread..
Regress the annual rate of exchange rate changes : Regress the annual rate of exchange rate changes on the annual inflation rate differential toestimatethe intercept and the slope coefficient, and interpret the regression results.
What i have seen is exactly what this tedtalk explained : What I have seen is exactly what this TedTalk explained. If they are confident in th entrepreneur, an offer will sometimes be made even if the product needs work.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

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