1. Using the Dividend Growth Model for valuation Companies MAX and MIN are in the same...
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1. Using the Dividend Growth Model for valuation Companies MAX and MIN are in the same industry and have no debt. Max is planning to acquire MIN. The data for MIN is: Earnings per share Dividends per share Number of shares Share price MIN £3 £1 1 million £25 Expected growth in earnings (and dividends) at MIN is 6% which would rise to 8% if owned by MAX even with no new investment. What is the gain from the acquisition? 1. Using the Dividend Growth Model for valuation Companies MAX and MIN are in the same industry and have no debt. Max is planning to acquire MIN. The data for MIN is: Earnings per share Dividends per share Number of shares Share price MIN £3 £1 1 million £25 Expected growth in earnings (and dividends) at MIN is 6% which would rise to 8% if owned by MAX even with no new investment. What is the gain from the acquisition?
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To calculate the gain from the acquisition using the Dividend Growth Model we need to determine the ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
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