Consider the following information for two all-equity firms, Firm Attrex and Firm Maliwan: Attrex Maliwan Shares outstan

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Consider the following information for two all-equity firms, Firm Attrex and Firm Maliwan: Attrex Maliwan Shares outstan

Post by answerhappygod »

Consider the following information for two all-equity firms,
Firm Attrex and Firm Maliwan:
Attrex
Maliwan
Shares outstanding
4,800,000
175,000
Marketprice per share
$ 30.83
$ 371.43
Attrex estimates that the value of the synergistic benefit from
acquiring Maliwan is yearly positive Cash Flow of $1,085,000 in
perpetuity. Maliwan has indicated that it would accept a cash
purchase offer of $525.715 per share. Attrex is thinking about
offering 38% of their shares in exchange. How should Attrex
proceed?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply