Lets say that Metallic Creations Inc. is able to close the deal at a price of $1,000m
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Let’s say that Metallic Creations Inc. is able to close the deal at a price of $1,000m by paying cash or by exchanging 1 of its shares for 2 of New Horizon’s shares. Should it use cash or stock as the payment mechanism? Why? What are the pros and cons of each payment mechanism for the acquiring and the target firm(Made For Each Other) respectively?
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CASH ACQUISITION NPV of Cash Acquisition Value of New Horizon to Metallic Prod Cash Price 103125 m 1...View the full answer
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