User Account

All Pages

What is the npv of the merger to rubicon llc

Assignment Help Finance Basics
Reference no: EM132569444

a) Rubicon LLC announced a bid to take over Minas Gerais Pty Limited. Rubicon LLC has 3 million shares outstanding, selling at $15 per share. Minas Gerais Pty Limited has 2 million shares outstanding, selling at $7.50 per share. Rubicon LLC estimated the potential economic gain form the merger to be $5,000,000.

i. If Minas Gerais Pty Ltd could be acquired for $9 per share, what is the NPV of the Merger to Rubicon LLC?

ii. What will Rubicon LLC shares sell for when the market learns that it plans to acquire Minas Gerais Pty Ltd for $9 per share? What will Minas Gerais Pty Ltd shares sell for? What are the percentage gains to the shareholders of each firm?

iii. If instead of a cash payment Rubicon LLC acquired Minas Gerais Pty Ltd through a share exchange what would be percentage gains if: for each share in the Minas Gerais Pty Ltd shareholders receive 0.6 of one share in Rubicon LLC. What will be the price per share of the merged firm?

iv. What is the NPV of the merger to Rubicon LLC when it uses an exchange of shares? If your answer differs explain why this is so.

Reference no: EM132569444

Questions Cloud

Organizational behavior : The field of organizational behavior can be organized around three levels: individual level, team level, and organizational level.
Describe the types of policies and coverage needed : Describe the types of policies and coverage needed for a typical small business.
Advantages and disadvantages of a listed company : Contrast in detail the advantages and disadvantages of a listed company using a rights issue rather than a private placement when raising additional equity
Apply stuart halls reception theory : Briefly describe what is happening in the commercial. Describe the generation and its key characteristics.
What is the npv of the merger to rubicon llc : If Minas Gerais Pty Ltd could be acquired for $9 per share, what is the NPV of the Merger to Rubicon LLC?
Difference in diversity management and affirmative action : Do you think there is a difference between diversity management and affirmative action? Provide an explanation for your response. Support your response with APA
What purpose does performance appraisal serve : What purpose does a performance appraisal serve? What are some key ideas to remember when conducting a performance appraisal?
Company strategic priorities : A company's strategic priorities must drive how capital allocations are made and the size of each unit's operating budget
How easy is it to access the internet in your community : How easy is it to access the Internet in your community? Do you agree or disagree with the idea that the Internet should be equally available to all members.

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