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hi can you please help Consider the following data in relation to a proposed acquisition, where Firm B will take over Firm A in a
hi can you please help
Consider the following data in relation to a proposed acquisition, where Firm B will take over Firm A in a horizontal takeover. Pre-merger Value A S500m Pre-merger Value B $375m Post-merger Value A+B $1,050m Cash Offer $550m Share Offer 52.5% of Shares in A+B a. Estimate the gains available from the merger. (4 marks) b. Estimate the value of the merger to firm A's shareholders under both the cash and share offer. (6 marks) C. Estimate the value of the merger to firm B's shareholders under both the cash and share offer. (6 marks) d. Which offer will predominate, cash or shares, if the shareholders of A are given the choice? (4 marks) Step by Step Solution
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