What is the value of abc following the merger

Assignment Help Finance Basics
Reference no: EM131928290

XYZ has a market value of $289449. ABC has a market value of $617676. ABC believes it can create $58473 of synergy if it acquires XYZ for $293011 in cash. Assume both firms are all-equity financed.

What is the value of ABC following the merger? (Round answer to 0 decimal places)

Wilson's has 4919 shares of stock outstanding at a market price per share of $17. Albertson's has 19785 shares outstanding that sell for $22 a share. By merging, $14814 of synergy can be created. Albertson's is acquiring Wilson's for $84,000 worth of Albertson stock.

What is the post-merger value per share? (Round answer to 2 decimal places, round intermediate calculations to 5 decimal places)

Reference no: EM131928290

Questions Cloud

What is the initial stock price : A call option on a non-dividend-paying stock with strike $70 costs $8 more than a put option with the same strike and time to expiration.
Benefit and advantages of paying a manager : What are the benefit and advantages of paying a manager a certain percentage of the profit beside his salary?
What was nellies operating income : The Nellie Company has provided the following information: Operating expenses were $115,000; Gross profit was $629,000. What was Nellie's operating income?
What is the market debt-to-equity ratio of each firm : What is the market debt-to-equity ratio of each firm? What is the book debt-to-equity ratio of each firm?
What is the value of abc following the merger : ABC believes it can create $58473 of synergy if it acquires XYZ for $293011 in cash. Assume both firms are all-equity financed.
Compute the monthly break-even point for the new toy : Compute the monthly break-even point for new toy in unit sales and in dollar sales. How many units must sold each month to make a monthly profit of $10,962?
Advantages of paying managers percentage of profit : What are the advantages of paying managers a percentage of the profit, and what agency costs or problems are avoided in this kind is salary arrangement?
Calculate the rate of return represented by the cash flow : Calculate the rate of return (ROI) represented by this cash flow to three significant figures. If you were offered an additional $2,000 at the end.
What are some basic purchasing guidelines : What are some basic purchasing guidelines that the Newtons should consider when choosing which new car to buy or lease? How can they find the information.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the opportunity cost of debt for these bonds

What is the opportunity cost of debt for these bonds and what price should these bonds sell for in the market

  What is the balanced scorecard

What is a segment?- What is the difference between contribution margin and segment margin?- What is the Balanced Scorecard?

  Report from the commonwealth fund

What does this new report from the Commonwealth Fund suggest as ways that we can address the increase of healthcare costs in the U.S.? The report includes specific recommendations. What do you think of these recommendations?

  What fraction of the firm will the vc receive in exchange

what fraction of the firm will the VC receive in exchange for its 4 million investment?

  What is the key economic principle involved in calculating

what is the key economic principle involved in calculating the present value and future value of multiple cash

  Equity in the computation of team wacc

If the common shares are selling for $4.90 per share, the preferred shares are selling for $16.9 per share, and the bonds are selling for 98.81 percent of par, what would be the weight used for equity in the computation of Team's WACC?

  Explaining how the global financial crisis

Explaining how the Global Financial Crisis [GFC] has had a significant impact on 1) the stability and interconnectedness of international financial markets and economies

  Mcgonigal''s meats, inc. currently pays no dividends

McGonigal's Meats, Inc. currently pays no dividends. The firm plans to begin paying dividends in 3 years (at the end of t3). The first dividend at that time will be $1 and dividends are expected to grow at 5% per annum thereafter.

  George foreman has been selling grills

George foreman has been selling grills for over 50 years now. The current target debt to value ratio is 35%. It borrows at 8% interest and the tax rate is 40%. At this capital structure, shareholders require a 15% return. They plan to expand p..

  What will be its dividend payout ratio

If the company follows the residual dividend policy, how much cash dividend can be distributed, and what will be its dividend payout ratio?

  Currency hedge forward rate

On January 2nd, 2011, BMW expects to ship 19,000 Mini-Cooper cars from its affiliated plant in the UK to the US, which it will sell through US dealers on 300-day terms at $26,500 each. What are two other ways BMW might hedge their pound/dollar expo..

  Senior management at candoo graphics has numerous

senior management at candoo graphics has numerous administrative and client problems. in the past the company assigned

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