Question: 267B/s 101178) 5:11 PM Given the following case, answer questions 9 to 13 below: Car & Co. is a German tomobile corporation specialized in producing


267B/s 101178) 5:11 PM Given the following case, answer questions 9 to 13 below: Car & Co. is a German tomobile corporation specialized in producing sports cars. In 2016, it has acquired Tiry Co., an English tire company. The acquisition costed $842 million and it was made for cash. It has resulted in 5450 million cost reduction per year. Assume that the values of both Car & Co and Tiry Co before acquisition were $193 billion and 56.8 billion respectively and that the opportunity cost of capital is 12% 9. What is the type of this combination? Horizontal Vertical Conglomerate Cross-boarder merger None of the above 10. What is the gain from this acquisition? * U OK/s 01 78 5:12 PM 10. What is the gain from this acquisition? $5.458 billion $25.458 billion $3.750 billion O $10.857 billion None of the above 11. How much cash money was paid by Car & Co. to Tiry Co.?* O $7.642 billion $5.958 billion $6.280 billion $8.560 billion None of the above U 512B/s 101%. 5:12 PM 12. If Car & Co. had paid $100 in cash for every share of Tiry Co., how many shares had Tiry Co., before the acquisition? * 61.250 million shares 76.420 million shares 59.580 million shares 49.870 million shares None of the above 13. What is the Net Present Value (NPV) of this acquisition? * $0.778 billion $17.816 billion $2.462 billion $2.908 billion O None of the above U
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