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

Venture, what is a co op society and its bye laws

what is a co op society and its bye laws

Illustrate the essential requisites of a promissory note, A promissory note...

A promissory note is an instrument in writing (not being a blank or a currency note) containing an unconditional undertaking, signed by the maker, to pay a certain sum of money onl

Julianne., Project is to write paper on financial analysis & business analy...

Project is to write paper on financial analysis & business analysis of COTT Corporation. 1st draft, financial analysis as it applies to COTT. 2nd draft Financial analysis & Executi

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 static theory of capital structure, Question 1: (a) Show the fo...

Question 1: (a) Show the forces driving cross-border mergers that operate more strongly than the reasons for transactions that take place within a given country's border. (b

Describe the term value management, Problem: (a) Describe the term "Va...

Problem: (a) Describe the term "Value Management" and what are the related benefits in applying such principles in a project?  In your opinion, how will Value Management

Fundamentals of Corporate Finance 2nd edition, The higher the rate of inter...

The higher the rate of interest the more likely you will elect to invest your funds and forego current consumption. Is this statement true or false?

What do you understand by internal control, Question: The District Cash...

Question: The District Cash Offices represents the decentralisation of services provided by the Accountant - General Department, specially in the collection and accounting of r

571, Trevor Price bought 10-year bonds issued by Harvest Foods five years a...

Trevor Price bought 10-year bonds issued by Harvest Foods five years ago for $936.05. The bonds make semiannual coupon payments at a rate of 8.4 percent. If the current price of th

Bond valuation, An investor buys a French government, 10-year bond, paying ...

An investor buys a French government, 10-year bond, paying annual coupon of 4.5%. Face value = 1000. The investor is unsure of his investment horizon and considers 5 horizons: 5, 6

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