FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Big Fish Inc. is acquiring Little Fish Ltd. Big Fish's share price is $10 and Little Fish's share price is $2. Both firms have 1

Big Fish Inc. is acquiring Little Fish Ltd. Big Fish's share price is $10 and Little Fish's share price is $2. Both firms have 1 million shares outstanding. Big Fish expects a discounted synergistic value of $1 million from the merging of operations of the two firms. If Big Fish pays cash of $2.2 million to Little Fish's shareholders, what is the NPV of the acquisition?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Banking

Principles Of Banking

Authors: Allyn C Buzzel

11th Edition

089982689X, 9780899826899

More Books

Students also viewed these Finance questions

Question

★★★★★
How often should variances be reported to management? What principle may be used with variance reports?

Answered: 1 week ago

Question

★★★★★
Imagine a scenario where you are Mr. Parks. What do you think you would have done after the conversation with Mr. Jackson? Write a paragraph describing your action plan.

Answered: 1 week ago

Question

★★★★★
Assuming the distribution being sampled is approximately normally distributed, use the small sample confidence interval for the mean to compute a (a) 90% upper bound confidence interval for ???? when...

Answered: 1 week ago

Question

★★★★★
Sanjay Kumar, the former chief executive of CA Inc., pleaded guilty to securities fraud and obstruction of justice charges stemming from a scheme that used backdated contracts to falsify the U.S....

Answered: 1 week ago

Question

★★★★★
Please, help with excel assignment. and if possible, provide the formulas to type in? E F G H Blue Valley Resort Profit Analysis Business Conference Executive Room Spa Restaurant Center Rooms...

Answered: 1 week ago

Question

★★★★★
In Agile framework, project status is visible and work is invisible Question 6 options: True False

Answered: 1 week ago

Question

★★★★★
a. A sample of 95 employees of Malindi Tyre Company were asked which means of transport they used t and the following data was obtained; Means of Transport Number of Employees Matatu 41 Personal Car...

Answered: 1 week ago

Question

★★★★★
What happens in Stage Four, the turning point? a. The individual or team gives up. b. The individual or team commits to move forward. c. The team doesn't have all the answers. d. All the above

Answered: 1 week ago

Question

★★★★★
"A low-cost carrier or low-cost airline (also known as a no-frills, discount or budget carrier or airline) is an airline that offers generally low fares in exchange for eliminating many traditional...

Answered: 1 week ago

Question

★★★★★
List the attributes along which customer demand from different segments can vary that are important to supply chain management.

Answered: 1 week ago

Question

★★★★★
in quickbooks online: Sarah at the sarah's spa is looking for an employee who has been terminated but not deleted from the employee list, but she can't find the employee. What should she do to...

Answered: 1 week ago

Question

★★★★★
3.11 In a city of 120,000 people there are 20,000 Norwegians. What is the probability that a randomly selected person from the city will be Norwegian?

Answered: 1 week ago

Question

★★★★★
Suppose that Karlyns store now contains 10 Hewlett-Packard computers, 5 Dell computers, and 5 Sony computers. Susan enters the store and wants to purchase 3 computers. The computers are selected...

Answered: 1 week ago

Question

★★★★★
The Web site for a specialty clothing retailer receives 1,000 hits on a particular day. From past experience it has been determined that every 1,000 hits results in 10 large sales of at least $500...

Answered: 1 week ago

Previous Question Next Question