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please assist with fully detailed answer for Question 2 of Financial Management Assignment QUESTION 3 (25) The directors of Standacone Limited have appointed you as
please assist with fully detailed answer for Question 2 of Financial Management Assignment
QUESTION 3 (25) The directors of Standacone Limited have appointed you as a merger and acquisition specialist. They are considering the take-over of Allied Conveyors Limited and you are to advise them whether or not to proceed with the project. The following market information is supplied to you: Earnings Per Share Standacone 315 C Allied Conveyors 252 C Market price Per Share R 4.00 R 3.00 Number Of shares 3 million 1 million Additional information: Cash payment of R5 million to Allied Conveyors Limited Synergy of R6 million will benefit the takeover Required: 3.1 Calculate the value of the proposed take-over 3.2 Calculate the net present value of the take-over 3.3 Calculate the take-over premium 3.4 Calculate the post-take-over market price of the share 3.5 Calculate the post-take-over increase/decrease price of the share QUESTION 3 (25) The directors of Standacone Limited have appointed you as a merger and acquisition specialist. They are considering the take-over of Allied Conveyors Limited and you are to advise them whether or not to proceed with the project The following market information is supplied to you: Earnings Per Share Standacone 315 C Allied Conveyors 252c Market price Per Share R 4.00 R 3.00 Number Of shares 3 million 1 million Additional information: Cash payment of R5 million to Allied Conveyors Limited Synergy of R6 million will benefit the takeover Required: 3.1 Calculate the value of the proposed take-over 3.2 Calculate the net present value of the take-over 3.3 Calculate the take-over premium 3.4 Calculate the post-take-over market price of the share 3.5 Calculate the post-take-over increase/decrease price of the share Assume the take-over was based on earnings per share 3.6 Calculate the exchange ratio based on earnings per share 3.7 Calculate the total number of shares in the take-over 3.8 Calculate the post-take-over earnings per share 3.9 Calculate the benefits, if any, to the companies. QUESTION 3 (25) The directors of Standacone Limited have appointed you as a merger and acquisition specialist. They are considering the take-over of Allied Conveyors Limited and you are to advise them whether or not to proceed with the project. The following market information is supplied to you: Earnings Per Share Standacone 315 C Allied Conveyors 252 C Market price Per Share R 4.00 R 3.00 Number Of shares 3 million 1 million Additional information: Cash payment of R5 million to Allied Conveyors Limited Synergy of R6 million will benefit the takeover Required: 3.1 Calculate the value of the proposed take-over 3.2 Calculate the net present value of the take-over 3.3 Calculate the take-over premium 3.4 Calculate the post-take-over market price of the share 3.5 Calculate the post-take-over increase/decrease price of the share QUESTION 3 (25) The directors of Standacone Limited have appointed you as a merger and acquisition specialist. They are considering the take-over of Allied Conveyors Limited and you are to advise them whether or not to proceed with the project The following market information is supplied to you: Earnings Per Share Standacone 315 C Allied Conveyors 252c Market price Per Share R 4.00 R 3.00 Number Of shares 3 million 1 million Additional information: Cash payment of R5 million to Allied Conveyors Limited Synergy of R6 million will benefit the takeover Required: 3.1 Calculate the value of the proposed take-over 3.2 Calculate the net present value of the take-over 3.3 Calculate the take-over premium 3.4 Calculate the post-take-over market price of the share 3.5 Calculate the post-take-over increase/decrease price of the share Assume the take-over was based on earnings per share 3.6 Calculate the exchange ratio based on earnings per share 3.7 Calculate the total number of shares in the take-over 3.8 Calculate the post-take-over earnings per share 3.9 Calculate the benefits, if any, to the companies
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