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Please explain and answer with the formula and calculation. Help me Asap (a) Going public for a firm means when a firm first sells its
Please explain and answer with the formula and calculation. Help me Asap
(a) Going public for a firm means when a firm first sells its common share to the investing public in an Initial Public Offerings (IPO) and it becomes subject to the regular reporting requirements of the securities laws. Required: Provide your opinion on the advantages and disadvantages of going public for a company. (8 marks) CORPORATE FINANCE I 4/8 (b) Borneo Berhad is considering to acquire Tenaga Corporation for RM7 in cash. Both companies are using 100 percent equity in their capital structure. For acquiring purposes, the financial controller of Borneo Berhad has gather all the information of both companies as follow: Borneo Berhad Tenaga Corporation Number of shares 50,000,000 35,000,000 outstanding (unit) Price per share (RM) 9.50 5.50 The net income of Borneo Berhad for the current year is RM12,450,000 Required: i. Discuss any TWO (2) types of acquisition that can be used by Borneo Berhad to acquire Tenaga Corporation (4 marks) ii. Calculate the post-merger share price. (4 marks) iii. Determine the Earnings per share (EPS) of Borneo Berhad after the merger. (5 marks) iv. Elaborate any TWO (2) synergies that may arise from the merger. (4 marks) 2. 4/8Step by Step Solution
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