{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-05T12:12:45-04:00", "answer_date": "2024-06-05 12:12:45", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2291332", "url": "\/study-help\/questions\/1-hughes-was-paid-over-6-million-per-year-as-2291332", "question_creation_date_js": "2024-06-05T12:12:45-04:00", "question_creation_date": "Jun 05, 2024 12:12 PM", "meta_title": "[Solved] 1. Hughes was paid over $6 million per ye | SolutionInn", "meta_description": "Answer of - 1. Hughes was paid over $6 million per year as Cooper's chief executive officer.6 Why would he be willing to consider | SolutionInn", "meta_keywords": "1,hughes,paid,$6,million,per,year,cooper,s,chief,executive,officer,6,acquisition,proposal,larger,competitor,meant,lose,job,2,determine,dollar,cent,premium,$55,share,price,evaluate,synergy,types,listed,case,exhibit,7,potentially,help,justify,3,stand-,value,based,dcf,model,growing,perpetuity,terminal,implied,ev,\/earnings,interest,taxes,depreciation,amortization,ebitda,multiple,create,two-,excel,data,table,varies,weighted,average,cost,capital,wacc,growth,rate,4,100,synergies,realized,scenarios,making,tables,varying,5,merger,accretive,dilutive,earnings,goodyear,stock,versus,cash,consideration,analysis,affect,conclusion,deal,attractive", "question_title_h1": "1. Hughes was paid over $6 million per year as Cooper's chief executive officer.6 Why would he be willing to consider an acquisition proposal from", "question_title": "1. Hughes was paid over $6 million per year as Cooper's chief", "question_title_for_js_snippet": "1 Hughes was paid over $6 million per year as Cooper's chief executive officer 6 Why would he be willing to consider an acquisition proposal from his much larger competitor even if it likely meant he would lose his job 2 Determine the dollar and per cent premium for a $55 per share acquisition price Evaluate whether each of the synergy types listed in case Exhibit 7 could potentially help justify this premium 3 What is the stand alone value per share of Cooper based on a DCF model with a growing perpetuity terminal value Determine the implied terminal value (EV) earnings before interest, taxes, depreciation, and amortization (EBITDA) multiple Create a two way Excel data table that varies the weighted average cost of capital (WACC) and terminal growth rate 4 What is the value per share of Cooper in your DCF model if 100 per cent of the synergies are realized Create some scenarios by making two way data tables by varying the per cent of realized synergies 5 Determine whether the merger would be accretive or dilutive to earnings per share if Goodyear used 100 per cent stock versus 100 per cent cash as the merger consideration Does this analysis affect your conclusion about whether the deal is attractive for Goodyear", "question_description": "1. Hughes was paid over $6 million per year as Cooper's chief executive officer.6 Why would he be willing to consider an acquisition proposal from his much larger competitor even if it likely meant he would lose his job? 2. Determine the dollar and per cent premium for a $55 per share acquisition price. Evaluate whether each of the synergy types listed in case Exhibit 7 could potentially help justify this premium. 3. What is the stand-alone value per share of Cooper based on a DCF model with a growing perpetuity terminal value? Determine the implied terminal value (EV)\/earnings before interest, taxes, depreciation, and amortization (EBITDA) multiple. Create a two-way Excel data table that varies the weighted average cost of capital (WACC) and terminal growth rate. 4. What is the value per share of Cooper in your DCF model if 100 per cent of the synergies are realized? Create some scenarios by making two-way data tables by varying the per cent of realized synergies. 5. Determine whether the merger would be accretive or dilutive to earnings per share if Goodyear used 100 per cent stock versus 100 per cent cash as the merger consideration. Does this analysis affect your conclusion about whether the deal is attractive for Goodyear", "transcribed_text": "", "related_book": { "title": "Financial and Managerial Accounting the basis for business decisions", "isbn": "125969240X, 978-1259692406", "edition": "18th edition", "authors": "Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1245.jpg", "uri": "\/textbooks\/financial-and-managerial-accounting-the-basis-for-business-decisions-18th-edition-1245", "see_more_uri": "" }, "free_related_book": { "isbn": "981124037X", "uri": "\/textbooks\/basic-lessons-on-isometries-similarities-and-inversions-in-the-euclidean-plane-a-synthetic-approach-1st-edition-978-9811240379-271983", "name": "Basic Lessons On Isometries Similarities And Inversions In The Euclidean Plane A Synthetic Approach", "edition": "1st Edition" }, "question_posted": "2024-06-05 12:12:45", "see_more_questions_link": "\/study-help\/questions\/business-business-communication-2023-February-20", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/in-the-following-regression-x-weekly-pay-y-", "description": "In the following regression, X = weekly pay, Y = income tax withheld, and n = 35 McDonald's employees. 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