Gobi Desserts is bidding to take over Universal Puddings. Gobi
has 4,200 shares outstanding, selling at $62 per share. Universal
has 3,200 shares outstanding, selling at $29.50 a share. Gobi
estimates the economic gain from the merger to be $33,000.
Required:
Gobi Desserts is bidding to take over Universal Puddings. Gobi has 4,200 shares outstanding, selling at...
Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Firm B & Firm T Shares outstanding 5,400 & 2,000. Price per share $ 44 & $ 18 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $9,200. a. If Firm T is willing to be acquired for $20 per share in cash, what is the NPV of...
Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Firm B Firm T Shares outstanding 4,800 1,800 Price per share $ 47 $ 20 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $9,100. a. If Firm T is willing to be acquired for $22 per share in cash, what is the NPV of the merger? (Do...
Consider the following premerger information about a bidding firm (Firm A) and a target firm (Firm B). Assume that both firms have no debt outstanding. Firm A Firm B Share price 50 20 Number of shares 10,000 3,000 Firm A has estimated that the value of the synergistic benefits from acquiring Firm B is $50,000. If Firm B is acquired for $30 per share in cash, what is the merger premium in this merger? If Firm B is acquired for...
Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Firm B Firm T Shares outstanding 6,000 1,200 Price per share $ 47 $ 17 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $9,500. Firm T can be acquired for $19 per share in cash or by exchange of stock wherein B offers one of its share...
Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Firm B Firm T Shares outstanding 6,200 1,400 Price per share $ 48 $ 18 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $9,600. Firm T can be acquired for $20 per share in cash or by exchange of stock wherein B offers one of...
Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Firm B Firm T Shares outstanding 6,000 1,200 Price per share $ 47 $ 17 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $9,500. Firm T can be acquired for $19 per share in cash or by exchange of stock wherein B offers one of its share...
Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Shares outstanding Price per share Firm B 5,800 $ 45 Firm T 1,300 $ 16 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $9,400. Firm T can be acquired for $18 per share in cash or by exchange of stock wherein B offers one of its share...
Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Firm B Firm T Shares outstanding 5,600 2,200 Price per share $ 45 $ 19 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $9,300. Firm T can be acquired for $21 per share in cash or by exchange of stock wherein B offers one of...
Consider the following premerger information about Firm X and Firm Y: Total earnings Shares outstanding Per-share values: Market book Firm X $ 96,000 53,000 53 14 Firm Y $ 22,500 18,000 18 8 Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $5 per share, and that neither firm has any debt before or after the merger. Construct the postmerger balance sheet for Firm...
Your company has earnings per share of $4. It has 1 million shares outstanding, each of which has a price of $40. You are thinking of buying TargetCo, which has earnings per share of $2,1 million shares outstanding, and a price per share of $25. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. a. If you pay no premium to buy TargetCo, what will be your earnings per share after the...