Oracle berhad a dynamic business in microchips makes

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7.Oracle Berhad, a dynamic business in microchips makes a bid of 17 shares for every 20 shares of Wizard Berhad, which manufactures electronic hardware. The income statements of the two firmsare as follows:A concerned shareholder of Wizard Berhad believes that the bid is undervalued and asks for your advice. You are required to determine:(a) The bid consideration(b) The earnings per share of the combined group.(c) The theoretical post-acquisition price of Oracle shares assuming the price/earning ratio remains.17 SHARES OF ORACLES20 SHARES OF WIZARD17/20 SHARES OF ORACLES1 SHARE OF WIZARD17/20X0.5 M =425 0000.5M =500,000425000 SHARES X RM2 = RM850,00041
TUNKU ABDUL RAHMAN UNIVERSITY COLLEGEFACULTY OF ACCOUNTING, FINANCE AND BUSINESSBBMF2093 CORPORATE FINANCETUTORIAL 11 & 12 : THE VALUATION AND CHARACTERISTIC OFBONDS AND STOCKSQUESTION 1Assume that you wish to purchase a bond with a 30-year maturity, an annual coupon rate of 10 percent, a face value of $1,000, and semiannual interest payments. If you require a 9 percent nominal yield to maturity on this investment, what is the maximum price you should be willing topay for the bond?
QUESTION 242
TUNKU ABDUL RAHMAN UNIVERSITY COLLEGEFACULTY OF ACCOUNTING, FINANCE AND BUSINESSYou intend to purchase a 10-year, $1,000 face value bond that pays interest of $60 every 6 months.If your nominal annual required rate of return is 10 percent with semiannual compounding, how much should you be willing to pay for this bond?
QUESTION 3A $1,000 par value bond pays interest of $35 each quarter and will mature in 10 years. If yournominal annual required rate of return is 12 percent with quarterly compounding, how much shouldyou be willing to pay for this bond?
TUNKU ABDUL RAHMAN UNIVERSITY COLLEGEFACULTY OF ACCOUNTING, FINANCE AND BUSINESS

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