Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - LG plc is considering a possible acquisition of Sony plc. You have been asked to evaluate the merits of the proposed merger. Here are the data on the two companies before the acquisition:
Sony
LG
Number of shares outstanding
1,000m
5,000m
Price-to-Earnings Ratio
10
2
Expected Earnings per Share (£)
0.5
3
LG has valued the synergies from the merger as being £2,500m.
Required -
a) If LG wishes to finance the acquisition with shares in the merged company. What is the maximum number of shares it would be willing to offer to Sony's shareholders? Explain.
b) What would be the consequences of such a bid on expected earnings per share of LG if we assume that the synergies will lead to an increase in expected earnings of £200m in the first year? Does the effect on earnings per share of the merged company affect the merits of the transaction?
c) Instead of the share exchange, LG has enough surplus cash to finance the acquisition with a cash offer. Alternatively, LG could return the cash to its shareholders before making the bid and continue with the share offer. How would you advise between the share offer and returning the cash to shareholders versus using the cash to make the acquisition?
The units in ending inventory were 40% complete. How many units are in process at May 31? What is the unit conversion cost for May
Calculate the number and cost of goods available for sale. Calculate the number of units in ending inventory. Calculate the cost of ending inventory and cost of goods sold using the (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
Why is the quality of the systems analysis report crucial to the successful continuation of the project? Why do you think Jon felt the need to travel to communicate with Altitude Online colleagues rather than using e-mail or phone conferencing? Wha..
Question - Complete the following question highlighted in yellow before attending your Workshop: Prepare a 30 June 2020 income statement
Within a hierarchical database, what is the name for the built-in linkages in data tables? Which data relationships can be contained in a hierarchical database?
outram corporation is presently making part i14 that is used in one of its products. a total of 8000 units of this part
Cash provided from sale of equipment purchased in c. above, $23,500. Required: Calculate cash flows from operating activities
Prepare the journal entry to record the recognition of fair value for 2015. Prepare the journal entry at the date of the bond purchase.
Both companies will have the same net income. Which of the following is an example of a payroll tax expense incurred by the employer?
Management hired consultants to fix the application, but after three months and $200,000, Identify potential causes for system implementation failure
hear right company has identified certain variable and fixed costs in the production of its hearing aid components.
When assets such as land and buildings are acquired for a lump sum? as much as possible should be allocated to land because it is not depreciable
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd