Question: 1. Estimate 3PARs equity value per share based on the assumptions and selected 3PAR data provided in Table. 2. Why is it appropriate to utilize
1. Estimate 3PAR’s equity value per share based on the assumptions and selected 3PAR data provided in Table.
2. Why is it appropriate to utilize at least a ten-year annual time horizon before estimating a terminal value in valuing firm’s such as 3PAR?
3. What portion of the purchase price can be financed by 3PAR’s nonoperating assets?
4. Does the deal still make sense to HP if the terminal period growth rate is 3% rather than 5%? Explain your answer.
On September 2, 2010, a little more than two weeks after Dell’s initial bid for 3PAR, Dell Computer withdrew from a bidding war with Hewlett-Packard when HP announced that it had raised its previous offer by 10% to $33 a share. Dell’s last bid had been for $32 per share, which had trumped HP’s previous bid the day before of $30 per share. The final HP bid valued 3PAR at $2.1 billion versus Dell’s original offer of $1.1billion.
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1 Several organizations experience high growth times which are further followed by the slower and stable growth period organization like 3PAR experience higher growth because of low market penetration ... View full answer
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