PLEASE HELP ME SOLVE THIS
PLEASE USE EXCEL
Flinder Valves and Controls, Inc. wwww 1. What is the issue facing Bill Flinder and Tom Eliot? What makes the situation favorable or unfavorable for a merger? 2. Describe the strengths, weaknesses, opportunities/threats, and goals for the merger from FVC's and RSE's perspective? 3. Use the corporate valuation model and forecasted financial information in Exhibit 10 to determine the share value of FVC without synergies. How does this compare to the current price? Assume the growth rate of cash flows after 2012 is 4.5%. Use the estimated synergies below to determine the value of FVC's shares. The table indicates the range of expected savings and project value from FVC's perspective and RSE's perspective. Consider both sources of synergies together. You should estimate the value of FVC shares from FVC's perspective and from RSE's perspective. wwww 4. FVC perspective $2 million to $4 million $10 million to $18 million RSE perspective $1.5 million to $3 million $5 million to $15 million Expected cost savings, per year Expected value of WG project, per year What price do you think Eliot should offer? Justify your answer. Assume that RSE proposes to pay for the acquisition by offering stock in the combined firm. Calculate the exchange ratio based on the offer price you propose in question 5. Based on your calculations, determine the value of the stock of the combined firm. You must show all steps of your calculation to get credit for this. 5. 6. Requirements for assignment: This is an individual assignment. You should not work with another student on the case. If there is evidence of collusion, you will be given an F on this assignment. Submit a type-written report that answers the questions (above) for the Flinder case. A hard copy of the report should submitted in class on the due date. Excel worksheets should be submitted in the Individual Case Assignment folder in TCU Online. Also, be sure that if I choose to print the Excel file that each worksheet will fit on one page (either landscape or portrait orientation). Flinder Valves and Controls, Inc. wwww 1. What is the issue facing Bill Flinder and Tom Eliot? What makes the situation favorable or unfavorable for a merger? 2. Describe the strengths, weaknesses, opportunities/threats, and goals for the merger from FVC's and RSE's perspective? 3. Use the corporate valuation model and forecasted financial information in Exhibit 10 to determine the share value of FVC without synergies. How does this compare to the current price? Assume the growth rate of cash flows after 2012 is 4.5%. Use the estimated synergies below to determine the value of FVC's shares. The table indicates the range of expected savings and project value from FVC's perspective and RSE's perspective. Consider both sources of synergies together. You should estimate the value of FVC shares from FVC's perspective and from RSE's perspective. wwww 4. FVC perspective $2 million to $4 million $10 million to $18 million RSE perspective $1.5 million to $3 million $5 million to $15 million Expected cost savings, per year Expected value of WG project, per year What price do you think Eliot should offer? Justify your answer. Assume that RSE proposes to pay for the acquisition by offering stock in the combined firm. Calculate the exchange ratio based on the offer price you propose in question 5. Based on your calculations, determine the value of the stock of the combined firm. You must show all steps of your calculation to get credit for this. 5. 6. Requirements for assignment: This is an individual assignment. You should not work with another student on the case. If there is evidence of collusion, you will be given an F on this assignment. Submit a type-written report that answers the questions (above) for the Flinder case. A hard copy of the report should submitted in class on the due date. Excel worksheets should be submitted in the Individual Case Assignment folder in TCU Online. Also, be sure that if I choose to print the Excel file that each worksheet will fit on one page (either landscape or portrait orientation)
