an all share bid of four Paxis shares for every five Wragger shares.
The most recent annual data relating to the two companies are shown below:
The takeover is expected to result in cost savings in advertising and distribution, reducing the operating costs
(including depreciation) of Paxis from 76% of sales to 70% of sales. The growth rate of the combined company is
expected to be 6% per year for four years, and 5% per year thereafter. Wragger’s debt obligations will be taken over
by Paxis. The corporate tax rate is expected to remain at 30%.
Sales and costs relevant to the decision may be assumed to be in cash terms.
Required:
(a) Using free cash flow analysis for each individual company and the potential combined company, estimate
how much synergy is expected to be created from the takeover. State clearly any assumptions that you make.
Note: The weighted average cost of capital of the combined company may be assumed to be the market weighted
average of the current costs of capital of the individual companies, weighted by the current market value of debt and
equity of the combined company, with the equity of Wragger adjusted for the effect of the bid price. (20 marks)
第1题
(d) Estimate by how much the bid might be increased without the shareholders of Paxis suffering a fall in their expected wealth, and discuss whether or not the directors of Paxis should proceed with the bid. (5 marks)
第2题
Letter A
Looking for Agent
distribution, mutual, represent, Who, perusal
Subject: Looking for Agent
Dear Mr.Adams:
Your name came to us from a mutual friend, Mr.Ying Soo Yong from Korea,(1)thought you might be interested in our line of products, namely bed sheets and pillow cases.
Although we export large quantities to Europe and North America, we have yet to establish(2)channels in the Asia Pacific.We are currently seeking agencies to(3)us.The attached materials are for your(4)Should you feel inchned to discuss opportunties for cooperation and(5)benefits , feel free to contact me at 86-10-12345678.
Sincerely yours,
Sun
第3题
A.4个字节,SOO用于标识路由所属源站点,避免路由环路
B.4个字节,SOO用于做负载均衡,区分不同的等价路由
C.8个字节,SOO用于标识路由所属源站点,避免路由环路
D.8个字节,SOO用于做负载均衡,区分不同的等价路由
第5题
—______is it from Beijing to Shanghai?—About 2,000 kilometers.
A.How long
B.How far
C.How soon
第6题
Please call me back______you see this message.
A.as well as
B.as early as
C.as far as
D.as soon as
第8题
Figo ________________(厌烦) of being a substitute, but was eager to be on the field as soon as possible.
第10题
When can exhibitor expect to get an answer?
A.Within a month or two.
B.By Tuesday.
C.Very soon.
D.Immediately.
为了保护您的账号安全,请在“上学吧”公众号进行验证,点击“官网服务”-“账号验证”后输入验证码“”完成验证,验证成功后方可继续查看答案!