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Urgent!!! Please answer, I will upvote. Question 2: It is January of 2020. Rapid Corporation is in the process of acquiring Tamed Inc. Tamed Inc.
Urgent!!! Please answer, I will upvote.
Question 2: It is January of 2020. Rapid Corporation is in the process of acquiring Tamed Inc. Tamed Inc. has two divisions: oil and gas and retail grocery. The current number of outstanding shares is 200. a) (4 marks) Which companies (Choose from the provided list) should you include in your analysis? Explain! b) (8 marks) What do you recommend for the total value of the oil and gas division? What about the retail grocery division? Explain how you collect the required information. c) (4 marks) The management of Tamed Inc. has informed Rapid Corporation that the Cost of goods sold for the retail grocery division was abnormally high this year due to the temporary closure of one of the local suppliers. We expect a much lower cost of goods sold for that division in the future. Given this information, what do you recommend for the total value of the oil and gas division? What about the retail grocery division? d) (4 marks) Rapid Corporation is offering $71 per share. Given the information in part (b), would you recommend the shareholders of Tamed Inc. to accept the offer or decline it? Explain! Hint: You need to use multiples in your analysis and valuation of Tamed Inc.! Statement of Comp. Income (Oil and Gas Division) Sales 2.000 Cost of goods 700 sold Depreciation 300 EBIT 1,000 Interest paid 200 Taxable income 800 Taxes (40%) 320 Net Income 480 Statement of Comp. Income (Retail Grocery Division) Sales 15,500 Cost of goods 14,400 sold Depreciation 500 EBIT 600 Interest paid 100 Taxable income 500 Taxes (40%) 200 Net Income 300 Statement of Comp. Income (Consolidated Statement) Sales 17,500 Cost of goods 15100 sold Depreciation 800 EBIT 1,600 Interest paid 300 Taxable income 1,300 Taxes (40%) 520 Net Income 780 Companies Enbridge Inc. Air Canada Inc. Suncor Energy Inc. Canadian Natural Resources Imperial Oil Ltd Loblaw Companies Ltd Pizza Pizza Royalty Corp Canadian Tire Corp. TC Energy Corp. Metro Inc
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