Advanced corporate finance; What is the Valuation of Hybrid Golf (NPV)? Should the shareholders of Birdie agree to this deal? What is the highest share price Birdie can pay per share of Hybrid?
1.What is the Valuation of Hybrid Golf (NPV)? Should the shareholders of Birdie agree to this deal? (70% of Grade)
2.What is the highest share price Birdie can pay per share of Hybrid? (5%)
3. Suppose Birdie decides to trade its shares in exchange for Hybrid stock. What exchange ratio would make the merger terms equivalent to a cash offer? (5%)
4) What is the highest exchange ratio Birdie should be willing to pay and still undertake the merger? (5%)
5)Discuss how a merger will impact all of the Cash Flows of a M & A deal, in particular; the change in Taxes and how can NOL’s be utilized. Is it difficult to utilize NOL’s? (5%)
6)Are Mergers beneficial to society based on academic literature? Wwho are often the winners?(5%)
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