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Car & Co. is a German automobile corporation specialized in producing sports cars. In 2016, it has acquired Tiry Co., an English tire company. The

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Car & Co. is a German automobile corporation specialized in producing sports cars. In 2016, it has acquired Tiry Co., an English tire company. The acquisition costed $842 million and it was made for cash. It has resulted in $450 million cost reduction per year. Assume that the values of both Car & Co. and Tiry Co. before acquisition were $19.5 billion and $6.8 billion respectively and that the opportunity cost of capital is 12%. a> Horizantal What is the type of the combination d> Cross - boarder merger this 0785.458 billion by Vertical c> Conglomerate, merger El None of the above. 27 What is the gaim of aquisition by125.458 billion 20743.750 billion. d) $10.857 billin E> None of th the above. 3> How much cash money was paid by Cart Co. Matto Tiry co? a> 7.642 billion b> 5.9 58 billica c> 6.280 billion d> 8.560 billion Ey None of the above town 47 IF Card Co. had paid $100 in Cash for every share of tiry co., how many shares had tiry Co before the aquisition. ay 61.250 M. Shares by 76.420 Million shave c) 59.580 Million Share d) 49.840 Millic shave this what is the Net present Value of E> None of the above. acquisition ( NPV)

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