Question
What is the type of this combination? * Horizontal Vertical Conglomerate Cross-boarder merger None of the above 7. What is the gain from this acquisition?
What is the type of this combination? *
Horizontal
Vertical
Conglomerate
Cross-boarder merger
None of the above
7. What is the gain from this acquisition? *
$2.250 Billion
$27 Million
$990 Million
$16.829 Billion
None of the above
8. How much cash money was paid by T-com to Beta Co.? *
$4.629 Billion
$4.329 Billion
$6.271 Billion
$6.125 Billion
None of the above
9. If T-com had paid $50 in cash for every share of Beta Co., how many shares had Beta Co., before the acquisition? *
86.58 Million shares
99.74 Million shares
125.42 Million shares
122.50 Million shares
None of the above
10. What is the Net Present Value (NPV) of this acquisition? *
$4.021 Billion
$1.279 Billion
$2.079 Billion
$10.558 Billion
None of the above
None of the above Given the following case, answer questions 6 to 10 below: T-com is an industrial conglomerate that work in numerous sectors, including, steel products and trading to mechanical and electrical engineering, automotive and telecommunications. In 2018, it has acquired Beta Co., a multinational telecommunication company. The acquisition costed $971 Million and it was made for cash. It has resulted in $270 Million cost reduction per year. Assume that the values of both T-com and Beta Co. before acquisition were $12.5 Billion and $5.3 Billion respectively and that the opportunity cost of capital is 12%. MeStep 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