1 2 Synergy 3 MVA 4 NI 5 6 A B C D E F G H | J Acquirer Target Amount Cash Scrip 30.00% Offer 100.00% 7 Share Price 8 Shares Outstanding 9 MVA 10 Net Income 11 MVE 12 MVD 13 D/E 14 EPS 15 PE 16 17 18 19 20 21 22 23 21 200,000.00 40,000.00 Pioneer Limited Pioneer Limited Alpha Limited Pioneer* Alpha* After Acquistion 20.00 12.00 25,000.00 1,400,000.00 150,000.00 10,000.00 300,000.00 75,000.00 K L M N O P Q R S T Pioneer Limited plans to acquire Alpha Limited. Pioneer Limited plans to propose a scrip offer by paying the market price of Alpha's shares as well as paying 30% of synergy created in the market value of assets. This deal expects to generate synergy of additional $200,000 of market value of assets and $40,000 of net income. Assume there is no transaction cost, financial and operating risk remain constant. Use the following financial data of both Pioneer Limited and Alpha Limited to estimate the following: 1. Calculated market value of equity of Pioneer Limited and Alpha Limited. 2. Calculated market value of debt of Pioneer Limited and Alpha Limited. 3. Calculated debt-to-equity ratio of Pioneer Limited and Alpha Limited. 4. Calculated earnings per share ratio of Pioneer Limited and Alpha Limited. 5. Calculated price-earnings ratio of Pioneer Limited and Alpha Limited. 6. Calculated market value of assets of Pioneer Limited after acquisition. 7. Calculated market value of debt of Pioneer Limited after acquisition. 8. Calculated market value of equity of Pioneer Limited after acquisition, market value of equity for both acquirer and target after acquisition 9. Calculated net income of Pioneer Limited after acquisition. 10. Calculated shares outstanding of Pioneer Limited after acquisition. 11. Calculated shares outstanding of Pioneer Limited after acquisition and shares offered to the target firm. 12. Calculated debt-to-equity ratio of Pioneer Limited after acquisition. 13. Calculated earnings per share ratio of Pioneer Limited after acquisition. 14. Calculated price-earnings ratio of Pioneer Limited after acquisition.