Pre-acquisition market capitalization of amersham

Assignment Help Finance Basics
Reference no: EM133116495

Suppose the pre-acquisition market capitalization of Amersham was $8 billion and that this market capitalization did not reflect the possibility that Amersham will be acquired. In order to justify the purchase price of $10 billion for all of Amersham's equity, what is the additional annual no-growth FCF in perpetuity that GE needs to generate, starting from one year after the acquisition? The relevant WACC is 10%.

Reference no: EM133116495

Questions Cloud

Islamic banking and financial institutions : Explain five issues related to ethical in Islamic banking and financial institutions.
Er model constructs and the relational model constructs : Discuss the correspondences between the ER model constructs and the relational model constructs
After-tax cash flows for the company : Assume a corporation has earnings before depreciation and taxes of $135,000, depreciation of $25,000, and that it has a 35% combined tax bracket. What are the a
Data analytics for business assignment : Data Analytics For Business Assignment - What type of variable (Continuous, Discrete, Ordinal or Nominal) is Cause and justify your answer
Pre-acquisition market capitalization of amersham : Suppose the pre-acquisition market capitalization of Amersham was $8 billion and that this market capitalization did not reflect the possibility that Amersham w
How might CompTIA Network-industry certification : How might the CompTIA Network+ industry certification benefit you and help you reach your goals?
Estimate exposure b to the exchange risk : Congratulations! You have been hired by a consulting company to work as a junior financial consultant. Your new responsibilities include assessing clients' fina
Find a present value of the strains of cash flows : Find a present value of the following strains of cash flows assuming the ferns opportunity cost is 11% year 125 is $10,000 you 6 to 10 and $16,000
What is a forward rate agreement : What is a Forward Rate Agreement (FRA)? Explain in your own words

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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