Question: Please help answer this step by step :) IQCapital Limited is evaluating four possible targets, which have the following nancial data: A B C D
Please help answer this step by step :)

IQCapital Limited is evaluating four possible targets, which have the following nancial data: A B C D PV of incremental cash ows (synergy) $25,000,000 $34,000,000 $20,000,000 $55,000,000 Shares of common stock outstanding 1,000,000 4,000,000 2,000,000 3,000,000 Price per share $80 $50 $60 $65 Expected Earnings $10,000,000 $20,000,000 $15,000,000 $21,000,000 [QCapital presently has 5,000,000 shares outstanding, its stock prioe is $60, and its expected earnings are $30,000,000 without any merger. Assume that the target rms have no debt and each of the target rm can be acquired at a merger premium of 25% a. Calculate the NPV of the four proposed mergers. Are any of the mergers infeasible? b. Assuming acquisition through stock. Determine the post merger EPS for the feasible merger candidates. c. Ifonly one merger can be undertaken, which one is it? Why
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
