User Account

All Pages

What would be the npv of the offer to the bidder

Assignment Help Accounting Basics
Reference no: EM133094181

Question - Bidder has 1.5 million shares outstanding and is going to acquire Target, which has 1 million shares outstanding. The market prices for Bidder and Target are $25 and $15 per share, respectively. The merger could create an estimated savings of $600,000 annually forever. Bidder's shareholders have decided to pav $20 for each share of Target and the appropriate cost of capital is 13%, then what would be the NPV of the offer to the Bidder?

Reference no: EM133094181

Questions Cloud

Elements of diversity are most relative to your daily life : As a member of the Georgia Southern Community, how do you define inclusive excellence? What elements of diversity are most relative to your daily life?
How much will she have in her retirement plan : If she contributes $250 at the beginning of each month, with her employer doing the same, how much will she have in her retirement plan at retirement
Antagonistic and counter-productive for organizations : 1. Union-Management relationships are usually antagonistic and counter-productive for organizations. How can any organization maintain cooperative and harmoniou
Explore regional or cultural differences in labor conditions : 1. Explore regional or cultural differences in labor conditions 2. Examine the impact of currency fluctuations on international business activities
What would be the npv of the offer to the bidder : The market prices for Bidder and Target are $25 and $15 per share, respectively. What would be the NPV of the offer to the Bidder
Senior executive and executive pay : Review the senior executive and executive pay as represented above.
Decisions within the sports management realm : Make some rational and insightful comments regarding the incident either supporting or not supporting the decisions within the sports management realm.
Do you think 360-degree feedback is effective : Do you think 360-degree feedback is effective? Explain.
Discuss hr role directing : Discuss HR's role directing, managing, facilitating organizational CR initiatives/programs

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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