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Use Figure B to answer the following question: What is the amount of Equity for Pro Forma New Buyer? (Box labeled “E” in the figure)

Use Figure B to answer the following question: What is the amount of Goodwill for Pro Forma New Buyer?  (Box labeled “G” in the figure)

Please use this figure (Figure B) to answer the following questions: Figure B   Target   Buyer   Pro-Forma New Buyer   Book Value Mkt Value   Book Value Mkt Value    Book Value   12/31/2002 12/31/2002   12/31/2002 12/31/2002   12/31/2002 Current Assets        100,000         100,000           600,000         500,000                     PP&E     2,000,000      2,100,000        8,000,000    10,000,000                     Goodwill                     –                    –                      –                    –      G                  Other Assets        200,000         200,000           800,000         900,000                     Total Assets     2,300,000      2,400,000        9,400,000    11,400,000                        –                   Accts Payable          75,000           75,000           100,000         100,000                     L-T Debt     1,000,000      1,000,000        4,000,000      4,000,000    D                  Equity     1,225,000      1,325,000        5,300,000      7,300,000    E                 2003E EPS                1.00                  3.00                     Shares Outst.             50,000             100,000                     Price/Share               44.00                 60.00       Assume Buyer is acquiring Target, financed with 70% debt and 30% stock.  The stock prices shown above are the prices involved (i.e., the buyer’s stock at time of deal is $60 and they are paying $44 for the Target). The deal is closing on 12/31/02. Shares outstanding and 2003 Estimated EPS for standalone companies are shown above.   The pre-tax interest rate on debt financing is 5.0%.  The effective tax rate for the combined entity (to use in calculations) is 39.0%. Calculate the 2003E EPS of the combined entity.  Assume zero synergies.

Use Figure B to answer the following question: How much of the “New Company” (i.e., Pro Forma New Buyer) does the Buyer Control after the acquisition?

[2 POINT]  Name the two motivational speakers from Synch Sessions 2 and 3. (ALL OR NOTHING)

Please use the following figure (Figure A) to answer the following questions: Fig A It is 12/31/15.  The following data have been accumulated from analysis of Taylor Swift Enterprises:         2016E 2017E 2018E Free Cash Flows to the Firm  $113,000  $126,000  $152,000         Given:               Net Debt  $ 2,268,200     Shares Outstanding               41,940     Stock Price per share $22.00     WACC 8.0%     Effective Tax Rate 22.0%     Coupon Rate of Date 7.0%     Accounting Return on Equity 15.0%     Beta 1.50     Risk Free Rate 4.00%     Market Risk Premium 6.00%     Terminal Growth Rate 3.0%               What is Taylor Swift’s Cost of Equity (use CAPM):

Bruner proposes it’s a better idea to save money and avoid spending to gain deep knowledge in due diligence,  since the seller isn’t going to disclose everything to you anyway and it’s really all just about an EBIT multiple!

In a stock financed merger using a Fixed Value structure, the pre-closing risk (i.e., risk between announcement and close) is born:

A “Spin Off” is typically a tax free transaction for the Firm.

Which securities law provides the foundation for antitrust law in the US?