Question

Use the following information to answer the next 3 questions. Firm B is going to acquire Firm T. Firm B (Bidder) Firm T (Target) Shares Outstanding 220,000 150,000 Price per Share $120 $70 Earnings $1,800,000 $1,200,000 Question 6: Firm B will pay $75.25 per share in cash for each share of Firm T. The synergies are $5,600,000. What was the NPV of the takeover? a) $4,812,500 b) $2,025,000 c) $3,575,000 d) $787,500 e) None of the above Question 7: Assuming that the synergies are $2,700,000 and that Firm B will pay $74.50 in cash for each share of Firm T. What will be the price per share of firm B after the acquisition is completed? a) $132.27 b) $120.00 c) $129.20 d) $88.00 e) None of the above Question 8: Assuming that the synergies are $3,700,000 What is the maximum price per share that firm B can offer to pay Firm T? a) $70.00 b) $120.00 c) $144.67 d) $94.67 e) None of the above

          Use the following information to answer the next 3 questions.
Firm B is going to acquire Firm T.
Firm B (Bidder)
Firm T (Target)
Shares Outstanding
220,000
150,000
Price per Share
$120
$70
Earnings
$1,800,000
$1,200,000
Question 6: Firm B will pay $75.25 per share in cash for each share of Firm T. The
synergies are $5,600,000. What was the NPV of the takeover?
a)
$4,812,500
b)
$2,025,000
c)
$3,575,000
d)
$787,500
e)
None of the above
Question 7: Assuming that the synergies are $2,700,000 and that Firm B will pay $74.50
in cash for each share of Firm T. What will be the price per share of firm B after the
acquisition is completed?
a) $132.27
b) $120.00
c) $129.20
d) $88.00
e) None of the above
Question 8: Assuming that the synergies are $3,700,000 What is the maximum price per
share that firm B can offer to pay Firm T?
a) $70.00
b) $120.00
c) $144.67
d) $94.67
e) None of the above

Use the following information to answer the next 3 questions.
Firm B is going to acquire Firm T.
Firm B (Bidder)
Firm T (Target)
Shares Outstanding
220,000
150,000
Price per Share
12070
Earnings
1,800,0001,200,000
Question 6: Firm B will pay 75.25 per share in cash for each share of Firm T. The
synergies are5,600,000. What was the NPV of the takeover?
a)
4,812,500
b)2,025,000
c)
3,575,000
d)787,500
e)
None of the above
Question 7: Assuming that the synergies are 2,700,000 and that Firm B will pay74.50
in cash for each share of Firm T. What will be the price per share of firm B after the
acquisition is completed?
a) 132.27
b)120.00
c) 129.20
d)88.00
e) None of the above
Question 8: Assuming that the synergies are 3,700,000 What is the maximum price per
share that firm B can offer to pay Firm T?
a)70.00
b) 120.00
c)144.67
d) 94.67
e) None of the above

Added by Joseph W.

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