Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Acquisition Assumptions Acquisition of Snap by Amazon Acquisition Structure Assumptions Acquisition Premium Equity Issuance Discount (to Current Price) % Debt Financing % Equity Financing 20%
Acquisition Assumptions Acquisition of Snap by Amazon Acquisition Structure Assumptions Acquisition Premium Equity Issuance Discount (to Current Price) % Debt Financing % Equity Financing 20% 5% 20% 80% Acquirer and Target Assumptions Amazon Acquirer $3,099.40 518 $66,884 $23,688 $69,825 Snap Target $44.29 1,734 -$496 -$581 $334 Share Price (S/sh.) Fully Diluted Shares Outstanding (MM) Net Debt FY+ 1 Normalized Net Earnings FY+ 1 Normalized Cash Flow Pro Forma Adjustment FY+ 1 Normalized Net Earnings FY+ 1 Normalized Cash Flow Pro-Forma Net Debt -$3,134 S642 85,595 23 Review Later The effect of the transaction on FY + 1 CFPS for Amazon Inc. is as follows: Dilutive by 19.57% Accretive by 3.28% Dilutive by 3.28% Accretive by 19.57%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started