Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show me step by step on excel to gain better understanding Consider the following premerger information about Firm X and Firm Y Firm X

please show me step by step on excel to gain better understanding
Consider the following premerger information about Firm X and Firm Y
Firm X Firm Y
Total Earnings $86586 $45375
Shares outstanding 4986027322
Per-share values:
Market $57 $21
Book $21 $10
Assume that Firm X acquires Firm Y by issuing long-term debt to purchase all the shares outstanding at a merger premium of $3 per share. Assuming that neither firm has any debt before the merger, what would be the total assets for the new company XY.
NOTE: Enter the number rounding to four DECIMALS. If your decimal answer is 0.034576, your answer must be 0.0346. DO NOT USE the % sign

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

Finance Introduction To Institutions Investments And Management

Authors: Ronald W. Melicher, Edgar A. Norton

11th Edition

0470004460, 978-0470004463

More Books

Students also viewed these Finance questions