26-27-28-29-30-31

The following data apply to the next six questions: Silver Enterprises is considering making an offer to purchase Gold Enterprises. Silver's Vice President of finance has collected the following information: Silver Enterprises Gold Enterprises Dividends $1,050,000 $470.000 Earings $4,200,000 5960,000 Price-camins ratio (P/E) 14.5 10 Share Outstanding 1,500,000 750.000 Sive Enterprises also knows that securities analysts expect the earnings and dividends of Gold Enterprises to grow at a costa 4% each year. Silver Enterprises management believes that the acquisition of Gold Enterprises will provide the form with economies of scate that will increase this growth rate to 6% per year. 26 of 40 What is the value of Gold Enterprises to Silver Enterprises? a $15,367,097 Ob $15,622,345 Oc. $16,114 286 Od $16,550,686 None of the above, Unsure 27 of 40 What would Silver Enterprises gain be from this acquisition? O a $5,765,909 Ob $5,986,225 OC. $6.711,686 Od $6,514.286 None of the above unsure fe i Silver Enterprises were to offer $20 in cash for each share of Gold Enterprises what would the NPV of the acquisition bo? a $1.236.409 Ob $1.214.286 $1,314,686 od 51,165,856 None of the above Un 29 of 40 What is the most Silver Enterprises should be willing to pay in cash per share for the stock of Gold Enterprises? O $19.15 b$20.33 20.19 d52149 None of the above i Saver Enterprises were to offer 225.000 of its shares in exchange or the outstanding stock of Gold Enterprises, what would the NPV bo? O $5.436.909 $5.068,944 e $6,311,428 d. - $6.585.864 O None of the above unsure 31 of 40 Should the acquisition be completed? If so, should it be as in (Q28) or as in (0,30/? O. Yes, the acquisition should go forward, and Silver Enterprises should offer sharus wethe V higher OD. Yes, the acquisition should go forward, and Siver Enterprises should other chance NPV righer Oc No, the acquisition should not go forward, since the NPV is negative Od No, the acquisition should not go forward, since the NPV is zoro Not enough information to decide