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please help asap! and show all work neatly/in excel! In order to see exact numbers of your problem, please select your name first. Consider the
please help asap! and show all work neatly/in excel!
In order to see exact numbers of your problem, please select your name first. Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Estimated synergy and cash offer per share are given below.. a) What is the value of the merged company? b) Suppose Firm T is agreeable to a merger by an exchange of stock. B's share offer is shown below. What is the cash equivalent per T share of the share offer? c) Which offer will shareholders of T prefer - cash or B shares for T shares? Why? d) At what exchange ratio of B shares to T shares, the shareholders in T would be indifferent between the two offers? If you don't see numbers in green cells, please go to the Introduction Tab and select your name from drop-down list Firm B Firm T Shares outstanding 1,000 750 Price per share 20 25 Estimated Synergy Cash offer $10,000 S28 d) At what exchange ratio of B shares to T shares, the shareholders in T would be indifferent between the two offers? Implied target firm pre-merger value The new share price of B Total number of shares that target firm should get Shares offered (total) B shares offered per one T shareStep by Step Solution
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