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solve in 35 mins I will give you thumb up Question 3 Firm A plans to acquire Firm 3 through a merger. The pre-merger information

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solve in 35 mins I will give you thumb up

Question 3 Firm A plans to acquire Firm 3 through a merger. The pre-merger information for the two firms is as follows: Note 1: Only Firm A will be in operation after the merger, and Firm B will no longer exist after firms will be merged into one "new" Firm A. Note 1: Only Firm A will be in eperation after the merger, and Firm B will no fonger exist: arter a firm A. the merger, so that the two fimis will be meroed into one "rew" Firm A. Note 2; Firm A will take all the debts of Firm B after the merger. a). Assume that Firm A will issue cebt only to acquire Firm B. Please estimate the Debt, Equity, and D/E ratio for the combined firm (the new Firm A) after the merger. [20 Marks] b). Assume that Firm A will issue debt only to acquire Firm B. Please estimate the levered beta for the combined firm (the new Firm A) after the merger. [40 Question 3 Firm A plans to acquire Firm 3 through a merger. The pre-merger information for the two firms is as follows: Note 1: Only Firm A will be in operation after the merger, and Firm B will no longer exist after firms will be merged into one "new" Firm A. Note 1: Only Firm A will be in eperation after the merger, and Firm B will no fonger exist: arter a firm A. the merger, so that the two fimis will be meroed into one "rew" Firm A. Note 2; Firm A will take all the debts of Firm B after the merger. a). Assume that Firm A will issue cebt only to acquire Firm B. Please estimate the Debt, Equity, and D/E ratio for the combined firm (the new Firm A) after the merger. [20 Marks] b). Assume that Firm A will issue debt only to acquire Firm B. Please estimate the levered beta for the combined firm (the new Firm A) after the merger. [40

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