lOMoAR cPSD| 48519099
2024 M&A MODELLING TEST
MERGERS & ACQUISITIONS
MODELING CORPORATE
FINANCE QUESTIONS
, lOMoAR cPSD| 48519099
Shares outstanding 150,000
Cash 120,000
Tax Rate 6%
Discount Rate 2%
Enterprise Value 300,000
Debt 90,000
Perpetual Growth Rate 5%
1) Given the data in the above table, calculate equity value per share of this hypothetical
company. (Round to 2 decimal points)
1. $2.00 2. $2.20 3. $2.50
4. $3.00
2) All else being equal, which of the following results in greater accretion?
1. Increasing takeover premium and increasing revenue enhancement
2. Decreasing takeover premium and increasing revenue enhancement
3. Increasing takeover premium and decreasing revenue enhancement
4. Decreasing takeover premium and decreasing revenue enhancement
3) An all cash deal will have what impact on Pro Forma EPS (assuming both companies have a
positive EPS):
1. the same level of accretion as an all share deal.
2. a lower accretion than an all share deal.
3. a higher dilution than an all share deal.
4. a higher accretion than an all share deal.
2024 M&A MODELLING TEST
MERGERS & ACQUISITIONS
MODELING CORPORATE
FINANCE QUESTIONS
, lOMoAR cPSD| 48519099
Shares outstanding 150,000
Cash 120,000
Tax Rate 6%
Discount Rate 2%
Enterprise Value 300,000
Debt 90,000
Perpetual Growth Rate 5%
1) Given the data in the above table, calculate equity value per share of this hypothetical
company. (Round to 2 decimal points)
1. $2.00 2. $2.20 3. $2.50
4. $3.00
2) All else being equal, which of the following results in greater accretion?
1. Increasing takeover premium and increasing revenue enhancement
2. Decreasing takeover premium and increasing revenue enhancement
3. Increasing takeover premium and decreasing revenue enhancement
4. Decreasing takeover premium and decreasing revenue enhancement
3) An all cash deal will have what impact on Pro Forma EPS (assuming both companies have a
positive EPS):
1. the same level of accretion as an all share deal.
2. a lower accretion than an all share deal.
3. a higher dilution than an all share deal.
4. a higher accretion than an all share deal.
