Question: Please show each step QUESTION 5: Markham Equities Limited (MEL) is evaluating four possible targets, which have the following financial data: MEL presently has 1,000,000

Please show each step Please show each step QUESTION 5: Markham Equities Limited (MEL) is evaluating

QUESTION 5: Markham Equities Limited (MEL) is evaluating four possible targets, which have the following financial data: MEL presently has 1,000,000 shares outstanding, its stock price is $50, and its expected earnings are $5,000,000 without any merger. Assume that the target firms have no debt and each of the target firm 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. If only one merger can be undertaken, which one is it? Why

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