Question 2(a): using the accounting and market information for ValueCo below, determine the enterprise value for...

 

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Question 2(a): using the accounting and market information for ValueCo below, determine the enterprise value for ValueCo in a cash and stock transaction with fixed exchange ratio. (12 marks) Information: Cash offer price per share Exchange ratio Acquirer's share price Target fully diluted shares outstanding (million) 200 Total debt Preferred stock (million) Non-controlling interest (million) Cash and cash equivalent (million) $30 $180 $60 $50 0.5 $80 2000 Question 2(b): Explain why precedent transaction analysis is an important tool of valuation. (8 marks) Question 2(a): using the accounting and market information for ValueCo below, determine the enterprise value for ValueCo in a cash and stock transaction with fixed exchange ratio. (12 marks) Information: Cash offer price per share Exchange ratio Acquirer's share price Target fully diluted shares outstanding (million) 200 Total debt Preferred stock (million) Non-controlling interest (million) Cash and cash equivalent (million) $30 $180 $60 $50 0.5 $80 2000 Question 2(b): Explain why precedent transaction analysis is an important tool of valuation. (8 marks)

Answer rating: 100% (QA)

2a Particulars Market valie of common equity 50 x 200 Add Preferred stock Total debt Non controlling ... View the full answer