Question
Company A has a pre-acquisition value of 600,000. Company B has a pre-acquisition value of 200,000. Company A acquiries Company B in a cash acquisition
Company A has a pre-acquisition value of 600,000. Company B has a pre-acquisition value of 200,000.
Company A acquiries Company B in a cash acquisition with a bid value of 300,000.
The benefits arising from the acquisition are valued at 400,000.
How much of these benefits will remain for Company A shareholders after the cost of the acquisition is deducted?
200,000 | ||
400,000 | ||
300,000 | ||
100,000 |
A car manufacturing company acquires a rival car manufacturing company. This is an example of a:
Horizontal acquisition | ||
Vertical acquisition | ||
Diagonal acquisition | ||
Perpendicular acquisition |
Apollo Plc has 100,000 shares on a stand-alone basis, each with a value of 5. Lunar Plc has 50,000 shares on a stand-alone basis, each with a value of 2.
Apollo decides to acquire Lunar in a cash acquisition. Benefits of 200,000 are expected to arise from the acquisition.
Based on the information above, what will be the post-acquisition value per share of the merged group?
5.33 per share | ||
7 per share | ||
8 per share | ||
6 per share |
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