Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

BigShark wants to acquire SmallGuppy for $ 2 0 6 , 2 5 0 . 0 0 in the form of either cash or stock.

BigShark wants to acquire SmallGuppy for $206,250.00 in the form of either cash or stock. The synergy value of the deal is $30,000.00. BigShark has 30,000 shares outstanding at a price of $65.00 a share. SmallGuppy has 18,000 shares outstanding at a price of $24.00 a share. What is the NPV of acquiring SmallGuppy when stock financing is used?
a) $253,929.57
b) $217,184.54
) $309,883.91
d) $231,286.96
e)$279,427.13

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

Finance A Quantitative Introduction Volume 1

Authors: Piotr Staszkiewicz, Lucia Staszkiewicz

1st Edition

0128015845, 978-0128015841

More Books

Students also viewed these Finance questions

Question

What is an adjusted trial balance? What is its purpose?

Answered: 1 week ago

Question

Solve subject to the given condition; y' + (1/2)y = x ; y(0) = 1=2

Answered: 1 week ago