Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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) $231,286.96 b $279,427.13 c) $217,184.54 d) $309,883.91 e $253,929.57

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_2

Step: 3

blur-text-image_3

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

Financial statements

Authors: Stephen Barrad

5th Edition

978-007802531, 9780324186383, 032418638X

More Books

Students also viewed these Finance questions

Question

Why is UDP needed? Why cant a user program directly access IP?

Answered: 1 week ago