Mergers & Acquisitions (M&A) Modeling
ABC Co. Is considering an acquisition of XYZ Co. For a coins provide that values XYZ at 20%
better than its current market capitalization. Given the above information, calculate the takeover
top class in dollar terms (Round to the nearest dollar).
ABC Co. Stock Price
$26.00
XYZ Co. Stock Price
$10.00
ABC Co. Cash
$2,000,000
XYZ Co. Cash
$1,500,000
ABC Co. Shares Outstanding
300,000
XYZ Co. Shares Outstanding
one hundred fifty,000
A. $four hundred,000
B. $250,000
C. $three hundred,000
D. $315,000 - ANS-C. $300,000
All else being same, which of the subsequent outcomes in more accretion?
A. Increasing takeover top class and increasing revenue enhancement
B. Decreasing takeover premium and growing sales enhancement
C. Increasing takeover premium and reducing sales enhancement
D. Decreasing takeover premium and decreasing revenue enhancement - ANS-B. Decreasing
takeover premium and increasing sales enhancement
An all cash deal may have what effect on Pro Forma EPS (assuming each companies have a
effective EPS):
A. A better accretion than an all share deal.
B. The identical degree of accretion as an all proportion deal.
C. A lower accretion than an all share deal.
D. A higher dilution than an all percentage deal. - ANS-A. A higher accretion than an all
proportion deal.
Assess if the following declaration is genuine:"Company X SHOULD collect Company Y (All
else being same)" (SEE "M&A MODEL - QUESTIONS.XLSX")
True
, False - ANS-False
Complete the sources of coins table given the above screenshot. What is the right fee in mobile
C2?
$120,513
$one hundred thirty,135
$132,512
$one hundred fifty five,769 - ANS-$one hundred fifty five,769
Given the above information, calculate the quantity of accretion/dilution of cash waft in keeping
with percentage of the combined entity (round to the nearest percentage)
82%
85%
17%
25% - ANS-17%
Given the above records, what's the quantity of stock consideration concerned within the deal?
(Rounding to the closest whole number)
Acquirer Shares Outstanding
800,000
Target Shares Outstanding
5,000
Acquirer Share Price
$eight.00
Target Share Price
$sixteen.00
Cash Consideration in percent
25%
Takeover Premium
10%
A. 66,000
B. 22,000
C. 1,760,000
D. 5,280,000 - ANS-A. Sixty six,000
Given the above repayment agenda and facts, what is going to be the final stability of senior
debt A in the 12 months 2020?
$0
$30,000
$15,000
$90,000 - ANS-$30,000
WRONG
$90,000
ABC Co. Is considering an acquisition of XYZ Co. For a coins provide that values XYZ at 20%
better than its current market capitalization. Given the above information, calculate the takeover
top class in dollar terms (Round to the nearest dollar).
ABC Co. Stock Price
$26.00
XYZ Co. Stock Price
$10.00
ABC Co. Cash
$2,000,000
XYZ Co. Cash
$1,500,000
ABC Co. Shares Outstanding
300,000
XYZ Co. Shares Outstanding
one hundred fifty,000
A. $four hundred,000
B. $250,000
C. $three hundred,000
D. $315,000 - ANS-C. $300,000
All else being same, which of the subsequent outcomes in more accretion?
A. Increasing takeover top class and increasing revenue enhancement
B. Decreasing takeover premium and growing sales enhancement
C. Increasing takeover premium and reducing sales enhancement
D. Decreasing takeover premium and decreasing revenue enhancement - ANS-B. Decreasing
takeover premium and increasing sales enhancement
An all cash deal may have what effect on Pro Forma EPS (assuming each companies have a
effective EPS):
A. A better accretion than an all share deal.
B. The identical degree of accretion as an all proportion deal.
C. A lower accretion than an all share deal.
D. A higher dilution than an all percentage deal. - ANS-A. A higher accretion than an all
proportion deal.
Assess if the following declaration is genuine:"Company X SHOULD collect Company Y (All
else being same)" (SEE "M&A MODEL - QUESTIONS.XLSX")
True
, False - ANS-False
Complete the sources of coins table given the above screenshot. What is the right fee in mobile
C2?
$120,513
$one hundred thirty,135
$132,512
$one hundred fifty five,769 - ANS-$one hundred fifty five,769
Given the above information, calculate the quantity of accretion/dilution of cash waft in keeping
with percentage of the combined entity (round to the nearest percentage)
82%
85%
17%
25% - ANS-17%
Given the above records, what's the quantity of stock consideration concerned within the deal?
(Rounding to the closest whole number)
Acquirer Shares Outstanding
800,000
Target Shares Outstanding
5,000
Acquirer Share Price
$eight.00
Target Share Price
$sixteen.00
Cash Consideration in percent
25%
Takeover Premium
10%
A. 66,000
B. 22,000
C. 1,760,000
D. 5,280,000 - ANS-A. Sixty six,000
Given the above repayment agenda and facts, what is going to be the final stability of senior
debt A in the 12 months 2020?
$0
$30,000
$15,000
$90,000 - ANS-$30,000
WRONG
$90,000
