Question
Shark Attack plc has just launched a takeover bid for Soft Target plc. Shark Attack believes that it has identified 20,000,000 of annual efficiency savings
Shark Attack plc has just launched a takeover bid for Soft Target plc. Shark Attack believes that it has identified 20,000,000 of annual efficiency savings at Soft Target. Shark Attacks investors demand a return of 8% for the risk associated with an investment in Soft Target, and the corporate tax rate is 40%. What is the maximum premium that Shark Attack is prepared to pay over Soft Targets pre-bid value?
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Corporate Finance and Investment decisions and strategies
Authors: Richard Pike, Bill Neale, Philip Linsley
8th edition
1292064064, 978-1292064161, 1292064161, 978-1292064062
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