Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please ans this in 10 minutes ICIC Ltd & SBE Ltd are to merge. Revenue of ICIC is 10 lacs while revenue of SBE is

image text in transcribed

Please ans this in 10 minutes

ICIC Ltd & SBE Ltd are to merge. Revenue of ICIC is 10 lacs while revenue of SBE is Rs. 6 lacs. The companies expect certain benefits on merger mainly in operations with Cost of Goods sold going down from 80% to 70%. The present growth rate of ICIC is 6%. Post-merger, it expects growth rate to go up by 1%. Cost of capital is 10%. Taxes are 25% Merged entity expects to benefit out of synergy. Find out the Benefits of synergy

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

The Repo Handbook

Authors: Moorad Choudhry

1st Edition

0750651628, 978-0750651622

More Books

Students also viewed these Finance questions

Question

What does stickiest refer to in regard to social media

Answered: 1 week ago