TRUE or FALSE.

Provide all the details of your analysis.

1. Pepsi Co. has EBITDA of 55.6 million, excess cash of 100 million, 3 million of debt and 21 million shares outstanding. If B Inc. is pepsiCo.s main benchmark with an EV/EBITDA multiple of 9.73; then, the estimated share price for pepsiCo. using relative valuation will be $ 25.76 per share. ["TRUE", " FALSE"]

2. Allen Co. and T Co.s prices per share are $40 and $25, respectively. Both firms have 1 million shares outstanding. Allen Co. will buy T Co. by issuing new shares. No synergies are expected from the transaction. If the offer represents a 20% premium over T Co.s price per share. Then, Allen Co. will issue 625,000 new shares in order to pay the takeover offer. ["TRUE", " FALSE"]

3. In the context of question 2, the price per share of the combined corporation (AT Co.) immediately after the takeover is completed will be 65 million. ["TRUE", " FALSE"]

4. Loki Inc. and Thor Inc. have entered into a stock swap merger agreement whereby Loki will pay a 40% premium over Thors pre-merger price. If Thor's and Lokis pre-merger price per share was $40 and $50, respectively; and both companies had 1 million of shares outstanding. Then, Loki will offer Thor an exchange-ratio of 1.12. ["TRUE", " FALSE"]

5. T Co, an all-equity firm, has a price per share of $20 and 2 million shares outstanding. It is well known that if A Co, a big competitor, controlled T Co, TCo.'s value would increase by 40%. A Co plans to offer $25 per share for 50% control of T Co equity. A Co will fund the entire purchase value using a bank loan. Under these conditions, A Co takeover attempt should fail due to the free-rider problem. ["TRUE", " FALSE"]