Business, 03.07.2020 04:01 yurlgurllmay

Question 3 Company AB has a market value of GH¢50 million. Company CD has a market value of GH¢200 million. CD has determined that if it combines resources with AB, cost savings will be worth GH¢25 million today. On this basis CD makes an offer to buy AB. If CD makes a cash offer of GH¢65 million for all the shares of AB, what is the cost of this purchase to CD? (i) What are the gains of this transaction?
(ii) Suppose CD has issued 100 of its shares to its shareholders, and is considering issuing 30 shares to the shareholders of AB, what is the cost of the share offer?
(iii) What is the net present value of the transaction under the cash offer to CD?
(iv) What is the net present value under the share offer?

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 20:30

In the rbv are defined as the tangible and intangible assets that a firm controls that it can use to conceive and implement its strategies.answers: management policies

Answers: 1

Answer

Business, 21.06.2019 21:30

Which of these things did galileo not do? a. stop publishing his scientific work after being convicted of heresy b. invent the concept of acceleration c. experiment with rolling balls down ramps of increasing steepness to test how objects would fall d. argue that earth moves around the sun e. make up a thought experiment that indicated that objects would fall at the same rate

Answers: 3

Answer

Business, 22.06.2019 05:00

What is a sort of auction for stocks in which traders verbally submit their offers?

Answers: 3

Answer

Business, 22.06.2019 13:10

bradford, inc., expects to sell 9,000 ceramic vases for $21 each. direct materials costs are $3, direct manufacturing labor is $12, and manufacturing overhead is $3 per vase. the following inventory levels apply to 2019: beginning inventory ending inventory direct materials 3,000 units 3,000 units work-in-process inventory 0 units 0 units finished goods inventory 300 units 500 units what are the 2019 budgeted production costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?

Answers: 2

Answer

You know the right answer?

Question 3 Company AB has a market value of GH¢50 million. Company CD has a market value of GH¢200 m...

Questions