Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ex. 6 begin{tabular}{|l|c|l|} hline Closing share price Z & 63 & EUR per share (at closing day of acquisition date) hline Number of shares

image text in transcribed

Ex. 6 \begin{tabular}{|l|c|l|} \hline Closing share price Z & 63 & EUR per share (at closing day of acquisition date) \\ \hline Number of shares outstanding & 750000 & \\ \hline Equity of company Z & 3150000 & EUR mn \\ \hline Debt of company Z & 1800000 & EUR mn \\ \hline Cash of company Z & 1350000 & EUR mn \\ \hline Total Annual Revenue & 1200000 & EUR mn \\ \hline \end{tabular} Considering that the industry average ratio EV/RM (enterprise Value to revenue multiple) is of 7.1x, would you advise the acquisition of company Z

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_2

Step: 3

blur-text-image_3

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

Energy Finance And Economics Analysis And Valuation Risk Management And The Future Of Energy

Authors: Betty Simkins, Russell Simkins

1st Edition

1118017129, 978-1118017128

More Books

Students also viewed these Finance questions

Question

Was the Hawthorne effect operating?

Answered: 1 week ago