Vahalla Inc. is attempting to buy Nibelheim SE. Data for each of the two companies are...
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Vahalla Inc. is attempting to buy Nibelheim SE. Data for each of the two companies are given in the table. Both companies are all equity financed. The CEO of Valhalla estimates that merger synergies have a present value of $8 billion. If Valhalla offers each Nibelheim shareholder 0.37 shares of Valhalla, then what is the net present value of the deal to Valhalla shareholders? Value of the Firm, Vu Shares Outstanding Stock Price Valhalla $50B 1.5B $34.16 Nibelheim $19B 1.2B $11.81 Vahalla Inc. is attempting to buy Nibelheim SE. Data for each of the two companies are given in the table. Both companies are all equity financed. The CEO of Valhalla estimates that merger synergies have a present value of $8 billion. If Valhalla offers each Nibelheim shareholder 0.37 shares of Valhalla, then what is the net present value of the deal to Valhalla shareholders? Value of the Firm, Vu Shares Outstanding Stock Price Valhalla $50B 1.5B $34.16 Nibelheim $19B 1.2B $11.81
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Step 1 Net Present Value Net present value NPV is the difference between the present value of cash ... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
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