Company A plans to merge with Company B. Company A will pay the shareholders of company...
Company A plans to merge with Company B. Company A will pay the shareholders of company B with shares of A and a value equal to the current value of their shares. Profits after the merger will be € 52,800. Today, the prices are as follows:
| Company A | Company B | |
| EPS | 2.00€ | 1.60€ |
| PRICE | 25.00€ | 16.00€ |
| P/E | 12.5 | 10.00 |
| STOCKS | 20.000 | 8.000 |
| PROFIT | 40.000€ | 12.800€ |
| TOTAL VALUE | 500.000€ | 128.000€ |
1) How many shares will the merged entity appear to have after
the merger?
2) What will be the earnings per share after the merger?
3) What will be the value of the merged entity?
4) What is the share price of the merged entity?
5) What is the P / E logo of the company merger?
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Company A plans to merge with Company B. Company A will pay the
shareholders of company...
help with all 3 please QUESTION 15 ABBA NABA Before Merger ABBA Before Merger After Merger...
help with all 3 please
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Hill, Inc.. plans to merge with Ravine Corp. Currently, the market value of Hill is 8...
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Your company has earnings per share of $4. It has 1 million shares outstanding, each of which has a price of $40. You a...
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...
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ABBA NABA Before Merger ABBA Before Merger After Merger $ 5.00 20.00 8.00 15,000 EPS $...
ABBA NABA Before Merger ABBA Before Merger After Merger $ 5.00 20.00 8.00 15,000 EPS $ 3.00 Price Per Share 30.00 Price Earnings (P/E) 11.50 No of Shares 30,000 Total Outstanding Earnings $80,000 Total Value Use this information to answer the following questions $40,000 What is the total value of the merged firm? A. $215,000 OB. $450,000 OC. $585,000 OD. $685,000 O E. $1,200,000
You are given the following facts: World Enterprises (A) Wheelrim& Axle (B) Merged Company (AB) EPS...
You are given the following facts: World Enterprises (A) Wheelrim& Axle (B) Merged Company (AB) EPS $2.4 3.20 Price per share $48 P/E 20 12 number of shares 120,000 240,000 Total Earnings $288,000 $720,000 Total market value $5,760,000 $8,640,000 There are no gains from this merger. In exchange for Wheelrim and Axle shares, World Enterprises issues just enough of its own shares to ensure the $3.20 earnings per share objective. d) What is the change in the total market value...
just need part d please show equations Your company has earnings per share of $4. It...
just need part d please show equations
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...
TIUVIUM (20 points) You are given the following facts: World Enterprises (A) Wheelrim& Axle Merged Company...
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TIUVIUM (20 points) You are given the following facts: World Enterprises (A) Wheelrim& Axle Merged Company...
TIUVIUM (20 points) You are given the following facts: World Enterprises (A) Wheelrim& Axle Merged Company (AB) (B) dor EPS $2.4 $3 3.20 Price per share $48 ? $36 12 P/E 20 number of shares 120,000 240,000 ? Total Earnings $288,000 $720,000 Total market value $5,760,000 $8,640,000 c) What is the cost of the merger to World Enterprises? (4 points) d) What is the change in the total market value of the World Enterprises shares? (3 points) There are no...
Question Help EPS and postmerger price Data for Henry Company and Mayer Services are given in...
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help with all 3 please
QUESTION 15 ABBA NABA Before Merger ABBA Before Merger After Merger S 5.00 20.00 8.00 15,000 EPS $ 3.00 Price Per Share 30.00 Price Earnings (P/E) 11.50 No of Shares 30,000 Total Outstanding Earnings $80,000 Total Value Use this information to answer this question What is the number of shares in the new firm? $40.000 O A 20,000 OB 30,000 O C.40,000 OD 45,000 O E none ABBA NABA Before Merger ABBA Before Merger After...
Hill, Inc.. plans to merge with Ravine Corp. Currently, the market value of Hill is 8 million euro and the market value of Ravine is I million euro if the companies are valued separately. After t merger, the company will enjoy economies of scale of 50 000 euro per year. which will last for 10 years, and then 20'000 euro per year forever. Hill will buy Ravine at a 20% premium in cash The cost of capital for both companies...
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...
You are given the following facts: World Enterprises (A) Wheelrim& Axle (B) Merged Company (AB) EPS $2.4 $3 3.20 Price per share $48 $36 12 ? ? P/E 20 number of shares 120,000 240,000 Total Earnings $288,000 $720,000 Total market value $5,760,000 $8,640,000 There are no gains from this merger. In exchange for Wheelrim and Axle shares, World Enterprises issues just enough of its own shares to ensure the $3.20 earnings per share objective. a) Complete the above table for...
ABBA NABA Before Merger ABBA Before Merger After Merger $ 5.00 20.00 8.00 15,000 EPS $ 3.00 Price Per Share 30.00 Price Earnings (P/E) 11.50 No of Shares 30,000 Total Outstanding Earnings $80,000 Total Value Use this information to answer the following questions $40,000 What is the total value of the merged firm? A. $215,000 OB. $450,000 OC. $585,000 OD. $685,000 O E. $1,200,000
You are given the following facts: World Enterprises (A) Wheelrim& Axle (B) Merged Company (AB) EPS $2.4 3.20 Price per share $48 P/E 20 12 number of shares 120,000 240,000 Total Earnings $288,000 $720,000 Total market value $5,760,000 $8,640,000 There are no gains from this merger. In exchange for Wheelrim and Axle shares, World Enterprises issues just enough of its own shares to ensure the $3.20 earnings per share objective. d) What is the change in the total market value...
just need part d please show equations
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...
TIUVIUM (20 points) You are given the following facts: World Enterprises (A) Wheelrim& Axle Merged Company (AB) (B) dor EPS $2.4 $3 3.20 Price per share $48 ? $36 12 P/E 20 number of shares 120,000 240,000 ? Total Earnings $288,000 $720,000 Total market value $5,760,000 $8,640,000 Business School There are no gains from this merger. In exchange for Wheelrim and Axle shares, World Enterprises issues just enough of its own shares to ensure the $3.20 earnings per share objective....
TIUVIUM (20 points) You are given the following facts: World Enterprises (A) Wheelrim& Axle Merged Company (AB) (B) dor EPS $2.4 $3 3.20 Price per share $48 ? $36 12 P/E 20 number of shares 120,000 240,000 ? Total Earnings $288,000 $720,000 Total market value $5,760,000 $8,640,000 c) What is the cost of the merger to World Enterprises? (4 points) d) What is the change in the total market value of the World Enterprises shares? (3 points) There are no...
Question Help EPS and postmerger price Data for Henry Company and Mayer Services are given in the following table, Henry Company is considering merging with Mayer by swapping 1.57 shares of its stock for each share of Mayer stock Henry Company expects its stock to sell at the same price/earnings (P/E) multiple after the merger as before merging a. Calculate the ratio of exchange in market price b. Calculate the eamings per share (EPS) and pricelearnings (PIE) ratio for each...
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