Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help my homework problems! It's due tomorrow!! In the fall of 2009, Kraft Foods attempted to buy Cadbury plc. Data for each of the

image text in transcribed

Please help my homework problems! It's due tomorrow!!

image text in transcribed
In the fall of 2009, Kraft Foods attempted to buy Cadbury plc. Data for each of the two companies are given in the noble. Both companies are all equity nanced. The CEO of Kraft Foods estimated that merger synergies had a present value of $12 billion. Kraft offered each Cadbury shareholder 0.4403 shares in Kraft. Use the data in the table to answer the questions below. I:l Part A. How many shares will there be in the merged company? Shares Outstanding Post Merger = B. (Enter your number in billions and round your answer to four decimals.) Part B. What is the value of the merged rm? Value of merged rm = $ B. (Enter your number in billions of dollars and round your answer to two decimals.) Part c. What is the NPV of the offer to Kraft Shareholders? NPV to Kraft = 3 B. (Enter your number in billions of dollars and round your answer to two decimals.) Part D. What is the stock price for Kraft after the merger'! Kraft Stock Price = $ . (Round your answer to two decimals.)

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

Personal Finance

Authors: Jeff Madura, Hardeep Singh Gill

4th Canadian edition

134724712, 134724713, 9780134779782 , 978-0134724713

More Books

Students also viewed these Finance questions

Question

Describe Conners moral beliefs and values. mk5

Answered: 1 week ago

Question

Core values are enduring beliefs about appropriate conduct. Yes No

Answered: 1 week ago