Corp Fin. Takeover Premium

Ok guys………. I question on this Vignette………. since I had left M&A I just selected all answers to be B
How many of the 6 answers do you feel the correct answer was ‘B’
Make me feel good..!!
 
Wait a minute - I thought they said that these calculations would be based on pre-merger market values! Doesn’t that mean you don’t factor in dilution?? Was that just smoke and mirrors?
 
Kwekoolio Wrote:
——————————————————-
> Wait a minute - I thought they said that these
> calculations would be based on pre-merger market
> values! Doesn’t that mean you don’t factor in
> dilution?? Was that just smoke and mirrors?
my thoughts, too.
 
it was a no brainer for me, i just looked for the too anwers that combined to 105. other then the 0 - 105 combo, the 78 - 27 was the other, hence picked (pure guess) 78 - 27
 
Kwekoolio Wrote:
——————————————————-
> Wait a minute - I thought they said that these
> calculations would be based on pre-merger market
> values! Doesn’t that mean you don’t factor in
> dilution?? Was that just smoke and mirrors?
that is you assume that prices don’t change
 
It did say pre-merger a few times in the questions. That is why I felt a little surprise coz I was ready to calculate the price for the new firm.
 
is there an answer like this:
Acquirer’s stock is overvalued compared to the target?
 
lxwqh Wrote:
——————————————————-
> is there an answer like this:
>
> Acquirer’s stock is overvalued compared to the
> target?
That’s what I put
 
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