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

Question

1 Approved Answer

BuyCo is purchasing SellCo, and paying in shares. BuyCo has a share price of $45, with 17 million shares outstanding. SellCo has a share price

BuyCo is purchasing SellCo, and paying in shares. BuyCo has a share price of $45, with 17 million shares outstanding. SellCo has a share price of $16, with 13 million shares outstanding. If the merger will create synergies with an NPV of $31 million dollars, and SellCo will not sell unless they get 0.6 of the synergies, how many shares in the merged form should BuyCo offer SellCo's equity holders in payment?

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

Quantitative Analysis for Management

Quantitative Analysis for Management

Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha

12th edition

133507335, 978-0133507331

More Books

Students also viewed these Finance questions

Question

solve the question in image - Question 2 5 pts BuyCo is purchasing SellCo, and paying in shares. BuyCo has a share price of $45, with 17 million shares outstanding. SellCo has a share price of $16,...

Answered: 1 week ago

Question

Need help with the attached questions from finance major Assignment 3 Questions 1. Anle Corporation has a current price of $27, is expected to pay a dividend of $2 in one year, and its expected price...

Answered: 1 week ago

Question

i am taking Cooperate finance which is FIN222 can help me to answer.. ? Tutorial 1 Topic 1 Chapter 1 4. What are the main advantages and disadvantages of organising a firm as a corporation? 6. You...

Answered: 1 week ago

Question

(a) Using your knowledge of economics and how markets work illustrate and explain why the price of electricity has increased so much over the past 18 months throughout the EU. You should consider the...

Answered: 1 week ago

Question

★★★★★
Accounting for bonds using amortized cost measurement based on the historical market interest rate. Several years ago, Huergo Dooley Corporation (HDC) issued $2,000,000 face value, 8% semiannual...

Answered: 1 week ago

Question

★★★★★
Water at 70C is to be passed through a porous polyethylene membrane of 25% porosity with an average pore diameter of 0.3 micron and an average tortuosity of 1.3. The pressures on the downstream and...

Answered: 1 week ago

Question

★★★★★
4. Avoid pointing or gesturing.

Answered: 1 week ago

Question

★★★★★
At the beginning of each year, the Accounting Department at Moon Glow Lighting, Ltd., must find the point at which projected sales revenue will equal total budgeted variable and fixed costs. The...

Answered: 1 week ago

Question

★★★★★
Akers Company sold bonds on July 1, 2017, with a face value of $100,000. These bonds are due in 10 years. The stated annual interest rate is 6% per year, payable semiannually on June 30 and December...

Answered: 1 week ago

Question

★★★★★
Use the given confidence interval to find the margin of error and the sample mean. (4.96,7.28) The sample mean is (Type an integer or a decimal.) The margin of error is (Type an integer or a decimal.)

Answered: 1 week ago

Question

★★★★★
On January 1 , 2 0 1 8 , Princess Corporation leased equipment to King Company. The lease term is ten years. The first payment of $ 8 0 0 , 0 0 0 was made on January 1 , 2 0 1 8 . The equipment cost...

Answered: 1 week ago

Question

★★★★★
Lucia has a bank account at First Street Bank. She received Form 1099-INT, Interest Income, shown below. She has no other interest or dividends to report. How should this income be reported on...

Answered: 1 week ago

Question

★★★★★
Use Exhibit 1. Which of the following statements is (are) correct? Exhibit 1 Production Possibilities Trucks Cars 1,000 0 800 1,600 500 2,700 0 3,500 x The opportunity cost of the first 500 trucks is...

Answered: 1 week ago

Question

★★★★★
An owner of a growing medical practice is interested in hiring a physician employee to help with the workload. What representations and warranties should be included in the physician's employment...

Answered: 1 week ago

Question

★★★★★
20.Rene and Sebastian, who are bitter enemies, engaged in a gunfight. In the ensuing battle, Rene killed Sebastian with a shot to the head. In the criminal case for Murder filed against Rene, the...

Answered: 1 week ago

Question

★★★★★
You've estimated the following cash flows (in $) for a project: A B 1 Year Cash flow 2 0 -5,300 3 1 1,325 4 2 2,148 5 3 2,222 Attempt 1/5 for 10 pts. Part 1 What is the IRR for the project?

Answered: 1 week ago

Question

★★★★★
Ball bearings are widely used in industrial applications. You work for an industrial food machinery manufacturer and your role is to design the driveshaft assembly on a new type of equipment that...

Answered: 1 week ago

Question

★★★★★
Describe the meaning of culture and discuss how cultural diversity in American education today is related to learning and teaching.

Answered: 1 week ago

Question

★★★★★
Walk around in your residential community without being asked if you really live there?

Answered: 1 week ago

Question

★★★★★
To prevent gender bias in his fourth-grade classroom, Mr. Bonner used gender-free language, provided positive role models, and ensured that all his students had opportunities to engage in various...

Answered: 1 week ago

Previous Question Next Question