User Account

All Pages

What is the distribution of the synergy

Assignment Help Finance Basics
Reference no: EM133057138

Dow Chemicals' (DOW) acquisition of Rohm & Haas (ROH) in 2008:

For this entire question use only the information given herein. Assume that the value of synergies is $5 billion. Disregard personal taxes. DOW has 936 million shares outstanding and ROH has 195.2 million shares outstanding. The pre-merger stock prices of DOW and ROH were $33.96 and $44.83 respectively.

If DOW pays cash $78 per share for each of the 195.2 million shares of ROH, what is the distribution of the synergy between the original stock holders of DOW and the stock holders of ROH?

Reference no: EM133057138

Questions Cloud

The asset tracking IoT implementation : Provide an introduction to the paper concerning the purpose of the graphic and the overall solution being recommended by the asset tracking IoT implementation.
Calculate the cost of preferred stock : Debt: 400,000 bonds outstanding with a face value of $1,000. The bonds currently trade at 88% of par and have 15 years to maturity.
Why investment in low return t-bills is not destroying : Why investment in low return t-bills is not destroying the return in a very based company who has a varied portfolio? In addition, how could the shareholder inc
Compute the internal rate of return for each : Compute internal rate of return for each of the projects using Excel functions. Based on internal rate of return, indicate whether each project is acceptable
What is the distribution of the synergy : Dow Chemicals' (DOW) acquisition of Rohm & Haas (ROH) in 2008:
Common challenges with which sentiment analysis deals : What are the common challenges with which sentiment analysis deals? What are the most popular application areas for sentiment analysis? Why?
Determine the return obtained by clara : Clara decided to sell the share whose market value was $ 331.29. Determine the return obtained by Clara for this investment.
Develop disaster recovery plan for organization : Develop a disaster recovery plan for an organization. There are many different templates available online for you to use as reference and guidance.
Discuss what they report on corporate sustainability : Choose two public listed firms from the same industrial sector, one in UK and the other from the US to discuss what they report on corporate sustainability

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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