merger and aquisition, Corporate Finance

Assignment Help:
It is given that company A will acquire company B with shares of common stock. Present earnings of A is rs. 20 million and of company B is rs. 5 million. Earning price per share of company A is 4 and of B is rs. 2.50. Market price of company A is 64 and of B is rs. 30. Price earning ratio is 16 for company A and 12 for company B. It is given that company B has agreed on an offer of rs. 35 in common stock of company A.Analyze the merger proposal for both the companies.

Related Discussions:- merger and aquisition

Method for improving the accuracy of option price, Assignment Describe in d...

Assignment Describe in detail one method for improving the accuracy of option prices and the first two 'Greeks', Delta and Gamma, calculated using the binomial tree. You should giv

Fin, Archer Daniels Midland Company is considering buying a new farm that i...

Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.10 million.

EBIT, Firm A has $10,000 in assets entirely financed with equity. Firm B al...

Firm A has $10,000 in assets entirely financed with equity. Firm B also has $10,000 in assets, but these assets are financed by $5,000 in debt (with a 10 percent rate of interest)

Explain how the crank-nicolson scheme, Solution of the Black-Scholes model ...

Solution of the Black-Scholes model is obtained through a transformation into a heat equation. The general one-dimensional heat equation is given by where α > 0 is a consta

Describe the determinants of corporate failures, Professor Steward Hamilton...

Professor Steward Hamilton wrote a case on the Enron collapse. He stated that when Enron failed and filed for bankruptcy protection on December 2001, the entair world came to a sh

NPV Best Case/Worst Case, Ask que We are evaluating a project that costs $8...

Ask que We are evaluating a project that costs $800,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the pr

DIVIDEND POLICY, The managing directors of three profitable listed companie...

The managing directors of three profitable listed companies discussed their company’s dividend policies at a business lunch. Company A has deliberately paid no dividends for the p

Explain the trade finance, Question: Trade finance is much facilitated ...

Question: Trade finance is much facilitated by banks' intervention as guarantors for the execution of financial commitments on behalf of importers. Banks provide a large variet

Write Your Message!

Captcha
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