3G 17%D16:37 3. Ain... 202251_31255_FITP_Group_XX_Company_04_Gamma... Not saved yet E F 1 Cash Scrip 60.00% Offer 3 Pioneer Limited plans to acquire Gamme Limited. Pioneer Limited plans to propose a 60% scrip offer by paying the market price of Gamma's shares as well as paying 20% 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 folowing financial data of both Pioneer Limited and Gamma Limited to estimate the following: 5 Pioneer Limited Pioneer Pioneer Gamma 6 2 Acquirer Target Amount 2 Synergy 20.00% MIVA 200.000.00 4 NI 40,000.00 Pioneer Limitec Gartma Limited Alter Acquistion Share Price 40,00 2400 Shares Outstandin 50,000.00 20,000.00 9 MVA 2.800,000.00 600,000.00 10 Net Income 300,000.00 150,000.00 11 MVE 12 MVD 13 DIE 14 EPS 15 1. Calculated market value of equity of Pioneer Limited and Gamma Limited, 2 Calculated market value of debt of Pioneer Limited and Gamma Limited. 3. Calculated debt-to-equity ratio of Pioneer Limited and Gamma Limted 4. Calculated earnings per share ratio of Pioneer Limited and Gamma Limited. 5. Calculated price-earings ratio of Pioneer Limted and Gamma Limited. 6. Calculated market value of assets of Pioneer Limited after acquistion. 7 Calculated market value of debt of Pioneer Limited after acquisition 8. Calculated market value of equity of Pioneer Limited after acquisition, market PE 16 17 18 19 9. Calculated net income of Pioneer Limited after acquisition 10. Calculated shares outstanding of Pioneer Limted after acquisition 11. Calculated shares outstanding of Pioneer Limited after acquisition and share 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 Poneer Limited after acquisition 20 21 22 24 75 = 1gmt Long Risk Mgmt Short M&A Cash M&A Scrip M&A Combined + 3G 17%D16:37 3. Ain... 202251_31255_FITP_Group_XX_Company_04_Gamma... Not saved yet E F 1 Cash Scrip 60.00% Offer 3 Pioneer Limited plans to acquire Gamme Limited. Pioneer Limited plans to propose a 60% scrip offer by paying the market price of Gamma's shares as well as paying 20% 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 folowing financial data of both Pioneer Limited and Gamma Limited to estimate the following: 5 Pioneer Limited Pioneer Pioneer Gamma 6 2 Acquirer Target Amount 2 Synergy 20.00% MIVA 200.000.00 4 NI 40,000.00 Pioneer Limitec Gartma Limited Alter Acquistion Share Price 40,00 2400 Shares Outstandin 50,000.00 20,000.00 9 MVA 2.800,000.00 600,000.00 10 Net Income 300,000.00 150,000.00 11 MVE 12 MVD 13 DIE 14 EPS 15 1. Calculated market value of equity of Pioneer Limited and Gamma Limited, 2 Calculated market value of debt of Pioneer Limited and Gamma Limited. 3. Calculated debt-to-equity ratio of Pioneer Limited and Gamma Limted 4. Calculated earnings per share ratio of Pioneer Limited and Gamma Limited. 5. Calculated price-earings ratio of Pioneer Limted and Gamma Limited. 6. Calculated market value of assets of Pioneer Limited after acquistion. 7 Calculated market value of debt of Pioneer Limited after acquisition 8. Calculated market value of equity of Pioneer Limited after acquisition, market PE 16 17 18 19 9. Calculated net income of Pioneer Limited after acquisition 10. Calculated shares outstanding of Pioneer Limted after acquisition 11. Calculated shares outstanding of Pioneer Limited after acquisition and share 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 Poneer Limited after acquisition 20 21 22 24 75 = 1gmt Long Risk Mgmt Short M&A Cash M&A Scrip M&A Combined +
