以下是引用chenyu123在2009-3-3 16:36:00的发言：
LOS n: Explain the effects of price and payment method on the distribution of risks and benefits in a merger transaction.
Q1. Oak Industries is considering making a bid for Tidy Trim Makers. The following data applies to the analysis:
|
|
Oak Ind. |
< >> |
Tidy Trim |
|
Pre-merger stock price |
$55 |
< >> |
$80 |
|
Number of shares outstanding |
$400m |
< >> |
$20m |
|
Pre-merger market value |
$22,000m |
< >> |
$1,600m |
|
Estimated synergies |
< >> |
$700m |
< >> |
If Oak Industries is confident that the merger synergies will be at least $700m or greater, the merger price should be between:
A) $1,600m and $2,300m and be paid for with cash.
B) $1,600m and $2,300m and be paid for with stock.
C) $700m and $2,300m and be paid for with cash.
Q2. The theoretical price range for a merger transaction is between the pre-merger price of the target (VT), and:
A) VT + synergies resulting from the merger.
B) VT + the takeover premium.
C) VT + synergies resulting from the merger – the takeover premium.
Q3. Which of the following statements regarding a cash offer are least accurate?
A) If the synergies are less than expected, the acquirer will bear the cost.
B) The target’s payoff is fixed, regardless of the synergies realized.
C) The target assumes some of the risk regarding the value of the synergies.
Q4. Which of the following statements regarding merger synergies are least accurate?
A) In a stock offer, all of the risks and potential rewards shift to the target.
B) The more confident the acquirer is that synergies will be realized, the more likely they will make a cash offer.
C) If estimates regarding the value of the synergies are too high, the target will bear some of the downside.
发表于 2009-5-26 23:04
| 
