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

How does depreciation affect cash flow, Define depreciation expense as it a...

Define depreciation expense as it appears on the income statement.How does depreciation affect cash flow? Accounting depreciation is the provision of an asset's initial cost ov

Standard deviations and correlations, Suppose you are given the expected ye...

Suppose you are given the expected yearly returns and standard deviations and correlations shown in the tables below: The market portfolio has an expected return of 18% and

Explain the negotiation of letter of credit in trade finance, Judges Maurit...

Judges Mauritius Co Ltd imports spare parts for cars from Dubai on a letter of credit basis, payable 60 days from ‘bill of lading' issue date. Each letter of credit is valid for 90

Tammy, rf is 5% rM is 10% according to the SML and the CAPM, an asset with ...

rf is 5% rM is 10% according to the SML and the CAPM, an asset with a beta of -2 has a required return of negative 5% (=5-2(10-5). can this be possible? Is this a negative asset w

Priori forecasting, Chang and Fyffe (1971) assume that a ?rm has a ''long-r...

Chang and Fyffe (1971) assume that a ?rm has a ''long-run sales history of individual seasonal-style-goods SKUs or groups of such SKUs''. They propose to estimate demand by using r

NPV, The First Bank of Ellicott City has issued perpetual preferred stock w...

The First Bank of Ellicott City has issued perpetual preferred stock with a $100 par value. The bank pays a quarterly dividend of $1.65 on this stock. What is the current price of

Cost of Capital, Calculating Cost of Equity. Bohannon Corporation''s common...

Calculating Cost of Equity. Bohannon Corporation''s common stock has a beta of 1.10. If the risk-free rate is 4.5% and the expected return on the market is 12%, what is the company

Calculate each partys net borrowing cost, Question: A U.S company has a...

Question: A U.S company has a liability of € 10 million in fixed rate loans outstanding at 6%. A German company has a $15 million Floating Rate Note outstanding at LIBOR. The e

Derive the fund separation theorem, Question 1: (a) What are the compe...

Question 1: (a) What are the competing theories which have been put forward to explain the term structure of interest rates? Which theories do the evidence tend to support?

Public financial management, You are planning to open a homeless shelter ca...

You are planning to open a homeless shelter called Helping Hands Mission Inc. in fiscal year (FY) 2011. You expect to have 60 beds and to operate at full capacity throughout the ye

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