Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please show all the work Use the following information for problems 8-11 Company A has agreed to buy Company B for $35.00/share in stock. Company
please show all the work
Use the following information for problems 8-11 Company A has agreed to buy Company B for $35.00/share in stock. Company A and Company B's stock prices on the day before announcement were $72.00 and $30.00 respectively. Company B has 25 million shares outstanding, 7 million exercisable options outstanding with an average exercise price of $24.00 per share, $200 million in net debt to be assumed by Company A and minority interests of $30 million to be acquired for cash. Company B Income Statement Items LTM Revenue LTM EBITDA LTM Net Income $1000 million 95 million 60 million 8. Calculate the implied exchange ratio 9. Calculate the premium paid. 10. Calculate the enterprise and equity values of the transaction 11. Calculate the multiples of revenues, EBITDA, and net incomeStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started