Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Some help and explanation will be great. Question III: (20 Points) EV(Smm) 1000 800 Company B D E Initial Price $10.00 $9.00 $8.00 $7.00 $6.00
Some help and explanation will be great.
Question III: (20 Points) EV(Smm) 1000 800 Company B D E Initial Price $10.00 $9.00 $8.00 $7.00 $6.00 600 400 200 There are 5 companies A-E with Enterprise Value (EV) given above. A11 5 companies have cash of $1000, zero debt, and 200 shares outstanding. Synergies equal 70% of the sum of the initial EVs of the companies in the merged entity. Team E plans to buy, the other 4 companies (A, B, C and D) in 4 deals that are described below. The cash consideration is financed with new debt. Consideration Per Selling Share Selling Company A B D Cash $ 10.00 $ 9.00 $ 8.00 $ 7.00 Newco Shares 0.25 0.25 0.25 0.25 a) If Company E closes these 4 deals, what will the MVBS of E look like and what are the merger prices to each of the 4 selling companies? Selling Company Merger Price MVBS Company E After 4 Deals $ /share A C= B $ /share L D= E = MVL = EV = MVA = $ share = D /share E= $ NE shares P= $ share Question III: (20 Points) EV(Smm) 1000 800 Company B D E Initial Price $10.00 $9.00 $8.00 $7.00 $6.00 600 400 200 There are 5 companies A-E with Enterprise Value (EV) given above. A11 5 companies have cash of $1000, zero debt, and 200 shares outstanding. Synergies equal 70% of the sum of the initial EVs of the companies in the merged entity. Team E plans to buy, the other 4 companies (A, B, C and D) in 4 deals that are described below. The cash consideration is financed with new debt. Consideration Per Selling Share Selling Company A B D Cash $ 10.00 $ 9.00 $ 8.00 $ 7.00 Newco Shares 0.25 0.25 0.25 0.25 a) If Company E closes these 4 deals, what will the MVBS of E look like and what are the merger prices to each of the 4 selling companies? Selling Company Merger Price MVBS Company E After 4 Deals $ /share A C= B $ /share L D= E = MVL = EV = MVA = $ share = D /share E= $ NE shares P= $ shareStep 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