Question
please very fast please Checkers, a computer manufacturer, announces that it will be acquiring Hadara Software. You know the following: Checkers had a beta of
please very fast please
Checkers, a computer manufacturer, announces that it will be acquiring Hadara Software. You know the following: Checkers had a beta of 1.2 prior to the merger. The firm has a market value of equity of $ 10 billion and $ 2 billion in debt outstanding. Hadara Software had a beta of 1.7 prior to the merger. The firm has a market value of equity of $ 8 billion and $ 2 billion in debt outstanding. Note: Checkers had bought Hadara with all debt, both firms have a 40% tax rate ,T-bond rate 0.06 and the equity risk premium is 0.073. Please write your answers in decimals. What is the unlevered beta for Checkers? Answer for part 1 What is the unlevered beta for Hadara? Answer for part 2 What is the unlevered beta for the combined firm? Answer for part 3 What is the value of the combined firm? Answer for part 4 What is the beta levered for the combined firm? Answer for part 5 What is the cost of equity for the combined firm? Answer for part 6
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