how to do q21? Please show all stepsHomework Answers
Share price of the acquirer after the merger=NPV of the merger/number of shares of acquirer+original share price=3.8/4+8=8.95
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how to do q21? Please show all steps
1802/125.230 MTUI AKLI DISD Exhibit 2: Use the...
QUESTION 3 (25) The directors of Standacone Limited have appointed you as a merger and acquisition...
QUESTION 3 (25) The directors of Standacone Limited have appointed you as a merger and acquisition specialist. They are considering the take-over of Allied Conveyors Limited and you are to advise them whether or not to proceed with the project. The following market information is supplied to you: Earnings Per Share Standacone 315 c Allied Conveyors 252 c Market price Per Share R 4.00 R 3.00 Number Of shares 3 million 1 million Additional information: • Cash payment of R5...
Please show the work.. ABC Inc is looking to launch an acquisition of a target for...
Please show the work..
ABC Inc is looking to launch an acquisition of a target for $3 billion. The target is expected to generate cash flows for five years. Table 1 below shows the expected cash flows of the target along with the acquisition cost. Table 2 shows the financial data required to generate a discount factor for the cash flows. 1. Calculate the discount rate (WACC) for the acquisition. 2. Evaluate the deal using NPV, IRR, and Payback. Consider...
Can someone please show me the break down on how to figure this out using Excel...
Can someone please show me the break down on how to figure this
out using Excel or Google spreadsheet? Thanks!
Merger Bid Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.50 (given its target capital structure). Vandell has $10.88 million in debt that trades at par and pays an 7.7% interest rate. Vandell's free cash flow (FCFO) is $2 million per year...
Problem 22-03 Problem 22-03 Merger Bid Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has...
Problem 22-03
Problem 22-03 Merger Bid Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.20 (given its target capital structure). Vandell has $10.10 million in debt that trades at par and pays an 7.2% interest rate. Vandell's free cash flow (FCF) is $2 million per year and is expected to grow at a constant rate of 4% a year. Both Vandell and...
PLEASE SHOW ALL WORK ON PAPER (So I can understand the steps) Problem 4 Assume the...
PLEASE SHOW ALL WORK ON PAPER (So I can understand the
steps)
Problem 4 Assume the following: T-Bill rate = 1%, Market Risk Premium = 9%, Tax rate = 20%, Beta = 2 Stock Price = $82/per share Current Dividend = $2.75 (growth rate = 5%) Shares outstanding 100 million. Total bonds =10.526 million bonds. Price of each bond = 950 Cost of Debt = 5.15%. (a): Find the cost of equity using CAMP and the dividend growth model. Calculate...
Please answer question 9-11 using thr information provided ! PLEASE SHOW ALL WORK Use the following...
Please answer question 9-11 using thr information provided !
PLEASE SHOW ALL WORK
Use the following information to answer questions 9, 10 and 11 Analysts project the following cash flows for Hopkin's Corporation during the next three years: Year 1: - $27 million (this is negative $27 million), Year 2: $42 million, Year 3: $52 million. Free cash flow is then expected to grow at a constant 6% rate. Hopkin's weighted average cost of capital is WACC = 11%. 9)...
please show all work needed 4. Johnson paid $325,000 to acquire 100% of Willis Corporation in...
please show all work needed
4. Johnson paid $325,000 to acquire 100% of Willis Corporation in a statutory merger. In addition, Johnson also agreed to pay the shareholders of Willis $0.40 in cash for every dollar in income from continuing operations of the combined entity over $75,000 in the first three years following acquisition. Johnson projects that there is a 20% (45%, 35%) probability that the income from continuing operations in the first three years following acquisition is $65,000 (590,000,...
Hi Please assist with a fully detailed answer for Question 3 of Financial Management assignment QUESTION...
Hi Please assist with a fully detailed answer for
Question 3 of Financial Management assignment
QUESTION 4 (25) 4.1 Discuss dividend payout policy and whether it has an impact on share price. (6) 4.2 Explain why the different sources of capital have different levels of risk and return. 4.3 Discuss whether the dividend growth model or the capital asset pricing model should be used to calculate the cost of equity. Using the dividend growth model, an analyst has estimated that...
show all work please and all the steps without using excel. Instructions: Show all of your...
show all work please and all the steps without using
excel.
Instructions: Show all of your work for maximum credit. You may use a financial calculator and show your entries (i.e., FV = 1000, ete). There are 20 points possible. 1. (10 points) Moose River Industrial is in the process of expanding and raising new capital through an initial public offering of common equity. The company has a target capital structure consisting of a debt to value (wa) ratio of...
Please show your work on the next following questions. Do not use Excel, handwritten answers. Thank...
Please show your work on the next following questions. Do not
use Excel, handwritten answers. Thank you
Roberto Inc. is a manufacturing company. The company has always followed their ideal capital structure which the management insists is 40% debt and 60% equity capital. The company can issue bonds for 9% coupon rate with 22 years to maturity. The interest is paid semi-annually. The bonds can be issued with a price of $835.42 today. Roberto's marginal tax rate is 40%. For...
QUESTION 3 (25) The directors of Standacone Limited have appointed you as a merger and acquisition specialist. They are considering the take-over of Allied Conveyors Limited and you are to advise them whether or not to proceed with the project. The following market information is supplied to you: Earnings Per Share Standacone 315 c Allied Conveyors 252 c Market price Per Share R 4.00 R 3.00 Number Of shares 3 million 1 million Additional information: • Cash payment of R5...
Please show the work..
ABC Inc is looking to launch an acquisition of a target for $3 billion. The target is expected to generate cash flows for five years. Table 1 below shows the expected cash flows of the target along with the acquisition cost. Table 2 shows the financial data required to generate a discount factor for the cash flows. 1. Calculate the discount rate (WACC) for the acquisition. 2. Evaluate the deal using NPV, IRR, and Payback. Consider...
Can someone please show me the break down on how to figure this
out using Excel or Google spreadsheet? Thanks!
Merger Bid Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.50 (given its target capital structure). Vandell has $10.88 million in debt that trades at par and pays an 7.7% interest rate. Vandell's free cash flow (FCFO) is $2 million per year...
Problem 22-03
Problem 22-03 Merger Bid Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt; its beta is 1.20 (given its target capital structure). Vandell has $10.10 million in debt that trades at par and pays an 7.2% interest rate. Vandell's free cash flow (FCF) is $2 million per year and is expected to grow at a constant rate of 4% a year. Both Vandell and...
PLEASE SHOW ALL WORK ON PAPER (So I can understand the
steps)
Problem 4 Assume the following: T-Bill rate = 1%, Market Risk Premium = 9%, Tax rate = 20%, Beta = 2 Stock Price = $82/per share Current Dividend = $2.75 (growth rate = 5%) Shares outstanding 100 million. Total bonds =10.526 million bonds. Price of each bond = 950 Cost of Debt = 5.15%. (a): Find the cost of equity using CAMP and the dividend growth model. Calculate...
Please answer question 9-11 using thr information provided !
PLEASE SHOW ALL WORK
Use the following information to answer questions 9, 10 and 11 Analysts project the following cash flows for Hopkin's Corporation during the next three years: Year 1: - $27 million (this is negative $27 million), Year 2: $42 million, Year 3: $52 million. Free cash flow is then expected to grow at a constant 6% rate. Hopkin's weighted average cost of capital is WACC = 11%. 9)...
please show all work needed
4. Johnson paid $325,000 to acquire 100% of Willis Corporation in a statutory merger. In addition, Johnson also agreed to pay the shareholders of Willis $0.40 in cash for every dollar in income from continuing operations of the combined entity over $75,000 in the first three years following acquisition. Johnson projects that there is a 20% (45%, 35%) probability that the income from continuing operations in the first three years following acquisition is $65,000 (590,000,...
Hi Please assist with a fully detailed answer for
Question 3 of Financial Management assignment
QUESTION 4 (25) 4.1 Discuss dividend payout policy and whether it has an impact on share price. (6) 4.2 Explain why the different sources of capital have different levels of risk and return. 4.3 Discuss whether the dividend growth model or the capital asset pricing model should be used to calculate the cost of equity. Using the dividend growth model, an analyst has estimated that...
show all work please and all the steps without using
excel.
Instructions: Show all of your work for maximum credit. You may use a financial calculator and show your entries (i.e., FV = 1000, ete). There are 20 points possible. 1. (10 points) Moose River Industrial is in the process of expanding and raising new capital through an initial public offering of common equity. The company has a target capital structure consisting of a debt to value (wa) ratio of...
Please show your work on the next following questions. Do not
use Excel, handwritten answers. Thank you
Roberto Inc. is a manufacturing company. The company has always followed their ideal capital structure which the management insists is 40% debt and 60% equity capital. The company can issue bonds for 9% coupon rate with 22 years to maturity. The interest is paid semi-annually. The bonds can be issued with a price of $835.42 today. Roberto's marginal tax rate is 40%. For...
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