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

Question

1 Approved Answer

DIY equity is worth $464 and has 120 shares outstanding. Target has equity value of $410 and has 46 shares outstanding. DIY acquires Target with

DIY equity is worth $464 and has 120 shares outstanding. Target has equity value of $410 and has 46 shares outstanding. DIY acquires Target with an exchange ratio of 2.32 shares of DIY for 1 share of Target and believes the combined value is $1,020. What is the NPV of the acquisition?

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

Finance Applications and Theory

Finance Applications and Theory

Authors: Marcia Cornett, Troy Adair

3rd edition

1259252221, 007786168X, 9781259252228, 978-0077861681

More Books

Students also viewed these Finance questions

Question

1. Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of equity with the DCF method and CAPM method. 2. What do you estimate the company?s WACC? Please...

Answered: 1 week ago

Question

Hello, Need help with the following:Please see Rubric thks Using information from"Are You Paying Too Much for That Acquisition?" List and describe the components used to calculate synergy value....

Answered: 1 week ago

Question

Complete the following problems from Chapter 12 in Financial Management: Theory and Practice : Chapter 12: Topics: Additional Funds Needed, Forecasted Statements and Ratios, Financing Deficits...

Answered: 1 week ago

Question

★★★★★
Bike World, Inc., wholesales a line of custom road bikes. Bike World's inventory, as of November 30, 2016, consisted of 22 mountain bikes costing $1,650 each. Bike World's trial balance as of...

Answered: 1 week ago

Question

★★★★★
(a) Determine the resistance of a lightbulb marked 100 W @ 120 V. (b) Assuming that the filament is tungsten and has a cross-sectional area of 0.010 mm2, determine the length of the wire inside the...

Answered: 1 week ago

Question

★★★★★
Assume (1) that SEC was operating at full capacity in 2009 with respect to all assets (2) that all assets must grow proportionally with sales (3) that accounts payable and accruals will also grow in...

Answered: 1 week ago

Question

★★★★★
1. Dont have all the interest areas around the outside of the room, leaving a large dead space in the middle.

Answered: 1 week ago

Question

★★★★★
The Rio Credit Union has $ 250,000 available to invest in a 12- month commitment. The money can be placed in Brazilian treasury notes yielding an 8% return or in riskier high-yield bonds at an...

Answered: 1 week ago

Question

★★★★★
Quantitative Problem: Adams Manufacturing Inc. buys $9.2 million of materials (net of discounts) on terms of 2/10, net 60; and it currently pays after 10 days and takes the discounts. Adams plans to...

Answered: 1 week ago

Question

★★★★★
In the income statement I need one more for the expenses. In the balance sheet I need the equity. Impact on income I need most of the right column including the bottom right (net income before/after...

Answered: 1 week ago

Question

★★★★★
Solve and indicate whether the following series are convergent or divergent Ans: Diverges by Limit Comparison Test 0 3 m=1 7" n! Ans: Converges by Integral Test 8 h= n=1 Thus, this diverges by the...

Answered: 1 week ago

Question

★★★★★
A farmer installed a tank for the purpose of keeping the hot water for his residential house in the farm. The tank is made of mild steel of wall thickness 10 mm and contains water at 90oC. Calculate...

Answered: 1 week ago

Question

★★★★★
Explain why you chose the specific article? How is it relevant to the current health care landscape? Discuss current event from the perspective of a health care administrator. Document your thoughts...

Answered: 1 week ago

Question

★★★★★
7. A series of transactions for Ace Repair is given below. Use the chart to show the effect of each of the transactions on assets, liabilities, and owner's equity by placing an x in the appropriate...

Answered: 1 week ago

Question

★★★★★
(CLO3) Sam and Mike are discussing using a new project management framework. Mike mentions that no matter what the team should always be willing to try new things. Sam asks Mike to focus on the pros,...

Answered: 1 week ago

Question

★★★★★
Question: what is the balance of the VISA Credit Card account after the credit card payment is recorded ? 2. Enter User ID (the email address you used to set up your QBO Account) 3. Enter Password...

Answered: 1 week ago

Question

★★★★★
What is a make-or-buy decision?

Answered: 1 week ago

Question

★★★★★
Coercive family process describes interactions in which parents negatively reinforce children for noncompliance or defiance while children negatively reinforce parents for giving in to their demands...

Answered: 1 week ago

Question

★★★★★
Parental monitoring involves the degree to which caregivers are aware of their childs activities, set appropriate limits, and consistently enforce these limits. Low parental monitoring predicts the...

Answered: 1 week ago

Question

★★★★★
The parents of children with conduct problems often attribute misbehavior to internal and stable causes and see themselves as less able to manage childrens behavior.

Answered: 1 week ago

Previous Question Next Question