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 not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
b. What will the price per share of the merged firm be assuming the conditions in (a)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. If Firm T is willing to be acquired for $22 per share in cash, what is the merger premium? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
d. Suppose Firm T is agreeable to a merger by an exchange of stock. If B offers one of its shares for every two of T 's shares, what will the price per share of the merged firm be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
e. What is the NPV of the merger assuming the conditions in (d)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both...
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. 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 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 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 6,200 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. 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...
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: If Universal can be acquired for $32 a share, what is the NPV of the merger to Gobi? What will Gobi sell for when the market learns that it plans to acquire Universal for $32 a share? (Round your...
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...
Makers Corp. had additions to retained earnings for the year just ended of $298,000. The firm paid out $178,000 in cash dividends, and it has ending total equity of $4.83 million. The company currently has 140,000 shares of common stock outstanding. What are earnings per share? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Earnings $ per share What are dividends per share? (Do not round intermediate calculations and round...