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Corporate finance: Need help with part (C), A and B are below as well with 40 million shares outstanding that are of $10 billion and

Corporate finance:

Need help with part (C), A and B are below as well image text in transcribed

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with 40 million shares outstanding that are of $10 billion and 100 million shares Mergers and Acquisitions Two firms are competing to acquire Price Inc, ket valu currently trading at Si0. Texa outstanding, while Kansas Inc. has 500 million 5 billion cash for the firm while Kansas has offered to a firm s2 as Inc, has shares trading at $20. Texas has offered to pay $1 Kansas asfered to issue 50 million new shares as a payment. merger is expected to be $400 million for both a) If the present value of synergies from shareholders going to accept and why? Texas and Kansas, which offer are Prices (2 marks) Tenn 1000m (4x/0 s00+400 no401-1.82 cash) Cosa 2 )If Price's shareholders believe that a merger with either bidder would create synergies with a present value of $950 million, would this affect evaluation of each alternative in part a? Why? (2 marks) with 40 million shares outstanding that are of $10 billion and 100 million shares Mergers and Acquisitions Two firms are competing to acquire Price Inc, ket valu currently trading at Si0. Texa outstanding, while Kansas Inc. has 500 million 5 billion cash for the firm while Kansas has offered to a firm s2 as Inc, has shares trading at $20. Texas has offered to pay $1 Kansas asfered to issue 50 million new shares as a payment. merger is expected to be $400 million for both a) If the present value of synergies from shareholders going to accept and why? Texas and Kansas, which offer are Prices (2 marks) Tenn 1000m (4x/0 s00+400 no401-1.82 cash) Cosa 2 )If Price's shareholders believe that a merger with either bidder would create synergies with a present value of $950 million, would this affect evaluation of each alternative in part a? Why? (2 marks)

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