Keep at least 4 decimals in all calculations This answer will get multiple thumbs up if correct YFL Inc is considering the acquisition of the Target Inc YAL has 114 million shares outstanding and the stock price is $3 72 Target has a market capitalization of $419 million and has 46 million shares outstanding The combined entity will be worth $1,014 million If YAL issues 99 million new shares to acquire Target, what is the NPV of the acquisition to YAL What is the premium (in ) received by Targets shareholder in Part A If the synergy will be equally shared by the two groups of shareholders, what is the exchange ratio What is the maximum number of shares YAL would issue to acquire Target

The Answer is in the image, click to view ...

Question: Keep at least 4 decimals in all calculations. This answer will get multiple thumbs up if correct. YFL Inc. is considering the acquisition of the

Keep at least 4 decimals in all calculations.

This answer will get multiple thumbs up if correct.

YFL Inc. is considering the acquisition of the Target Inc. YAL has 114 million shares outstanding and the stock price is $3.72. Target has a market capitalization of $419 million and has 46 million shares outstanding. The combined entity will be worth $1,014 million.

If YAL issues 99 million new shares to acquire Target, what is the NPV of the acquisition to YAL?
What is the premium (in %) received by Targets shareholder in Part A?
If the synergy will be equally shared by the two groups of shareholders, what is the exchange ratio?
What is the maximum number of shares YAL would issue to acquire Target?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Only accept hand-written answer in pdf file format. Keep at least 4 decimals in all calculations. YBL Inc. is considering the acquisition of the Target Inc. YAL has 123 million shares outstanding and...

Corporate Finance Course it's about Whole Foods purchase by Amazon. below are the questions need to be answered, also the documents are attached. QUESTIONS: 1.The investment thesis on AMZN has ALWAYS...

Briefly discuss the cost-volume-profit analysis model and how it is used. Use the attached PDF. APA Citation. 300 words. REVISED PAGES 3 Chapter Three 1 Fundamentals of Cost-Volume-Prot Analysis...

I've attached the quesiton as a word file, thanks! JWCL165_c11_506-567.qxd 8/12/09 7:54 AM Page 506 11 Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings Chapter STUDY...

please ANSWER ASAP rubric and template are below as well. no plagarism refernces included For Case Study 1, we will use AirBNB. Keep the analysis to 5 pages double spaced, not including the title and...

Hello. Can you help with this four question problem? Case PRIVATE EQUITY CASE: MERGER CONSOLIDATION The questions below COMBINE the Ohio & Maryland PT acquisitions as if they are a single c Learning...

Hi I know you opted out of an earlier question. I have several open questions. I really need to get them in. Would you be willing to take any of these questions? I have been waiting for 3 days. I...

MKT500 Week 7 Discussion Board I have attached the question, lecture notes, and an example of a student's response to the questions. Running head: KEYSAN NATURALS COMPANY: AIDA PRINCIPLE Keysan...

I need to get help with this case study PwC Case Studies in Taxation, 2013, PwC, LLP FLATIRONS, INC. Flatirons, Inc. (dba Flatirons Flapjacks Caf) specializes in unique breakfast and brunch menus and...

Listen to the following videos and then complete the assignments using the changed numbers on the guidance report. Place your answers on the guidance report. Open the Guidance Report and rework the...

You have completed the field work in connection with your audit of Alexander Corporation for the year ended December 31, 2012. The balance sheet accounts at the beginning and end of the year are...

If a = 6 m, determine the magnitudes of P and Q required to maintain the cable in the shape shown. -6 m--6 n -6 m--6 -

If someone snaps in the heat of the passion and murders someone, what degree would that be ? A . Involuntary ManslaughterB. First - degree murderC. Voluntary manslaughterD. Second - degree murder

------------------------------------- At the beginning of its first year of operations, Bonita Limited has 4,900, $3 preferred shares and 48,000 common shares. Using the format shown below, allocate...

During the next week, pay attention to evidence cited by others in public presentations. You might note what evidence is used on news programs, by professors in classes, and by special speakers on...

To what extent is the content of media controlled by powerful corporations?

Visit your schools career planning and placement offi ce. Ask to speak with someone who is familiar with nonprofi t organizations. Talk with this person to learn about opportunities for service that...