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_______ PepsiCo acquired Pizza Hut. What type of
merger was this?
a. Limited
b. Syndicated
c. Joint venture
d. Horizontal
e. Vertical
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- ABC Construction Corporation is planning to purchase STUVW Mining Corporation which is owned by S, T, U, V and W equally. ABC offered P2,000,000 each to S, T and U to obtain majority stake in STUVW. All parties agreed to this decision. 1. Kind according to purpose (Choose 1) a. Horizontalb. Verticalc. Product Extentiond. Market Extensione. Congenericf. Conglomerate 2. Kind according to approach to the target firm (Choose 1)a. Friendlyb. Hostile 3. Kind according to acquisition mode (Choose 1) a. Cashb. Equity swapc. Mix of cash and equity swapABC Broadcasting Inc. acquires GO Telecommunications Inc. ABC runs TV channels while GO sells TV and internet plans. ABC acquired Go by paying P10,000,000 and 200,000 ABC ordinary shares to the shareholders of Go who willing accepted the offer. 1. Kind according to purpose (Choose 1) a. Horizontalb. Verticalc. Product Extentiond. Market Extensione. Congenericf. Conglomerate 2. Kind according to approach to the target firm (Choose 1)a. Friendlyb. Hostile 3. Kind according to acquisition mode (Choose 1) a. Cashb. Equity swapc. Mix of cash and equity swapABC Corporation operates hotels and restaurants in the central business district of Makati City. It is aiming to acquire XYZ Inc. another corporation in Pampanga. This corporation runs small hostels. ABC offers to acquire XYZ by offering 100,000 ABC ordinary shares valued at P12,000,000. 1. Kind according to purpose (Choose 1) a. Horizontalb. Verticalc. Product Extentiond. Market Extensione. Congenericf. Conglomerate 2. Kind according to approach to the target firm (Choose 1)a. Friendlyb. Hostile 3. Kind according to acquisition mode (Choose 1) a. Cashb. Equity swapc. Mix of cash and equity swap
- 1. As a result of the merger, what is the goodwill? 560,000 638,500 650,000 11,500 2. what is the Retained Earnings after the merger? 10,465,250 10,269,250 10,350,500 10,280,750 3. what is the net increase or (decrease) in the stockholders' equity of SD Corp. after the merger? P8,904,250 P8,709,250 (P7,604,250) P7,604,250Identify the type of merger in the following case: ABC manufactures furniture. It acquired a leather-producing business for a 20% share in the ownership of the former. The latter agreed.a. Vertical, Hostile, Cash Purchaseb. Horizontal, Friendly, Equity Swapc. Horizontal, Hostile, Equity Swapd. Vertical, Friendly, Equity SwapWorld Enterprises is determined to report earnings per share of $2.17. It therefore acquires the Wheelrim and Axle Company. You are given the following facts: WorldEnterprises Wheelrimand Axle Merged Firm Earnings per share $ 1.80 $ 2.40 $2.17 Price per share $ 36.00 $ 24.00 ? Price–earnings ratio 20 10 ? Number of shares 90,000 140,000 ? Total earnings $ 162,000 $ 336,000 ? Total market value $ 3,240,000 $ 3,360,000 ? There are no gains from merging. In exchange for Wheelrim and Axle shares, World Enterprises issues just enough of its own shares to ensure its $2.17 earnings per share objective. Required: Complete the below table for the merged firm. How many shares of World Enterprises are exchanged for each share of Wheelrim and Axle? What is the cost of the merger to World Enterprises? What is the change in the total market value of the World Enterprises shares that were…
- The shareholders of ABC Corporation would like to know the valuation of their ownership in the entity. Relative valuation based on its two closest competitors will be made. The price-book value ratio will be used. X Inc. Y Co. Market value of ordinary shares 5,980,000 7,020,000 Book Value of ordinary shares 5,200,000 6,000,000 ABC has a book value of ordinary shares at P5,800,000. This includes aninvestment property that provides additional income. It has a book value ofP420,000 but a market value of P650,000. Also, a material error in theaccounts payable was identified and it resulted to a P300,000understatement. After considering these, the remaining and corrected bookvalue can be valued using relative valuation. What is the total relative valueof ABC ordinary shares?Calculate the percentage of ownership that Engro Corporation holds in Engro Foods (see Figure). Engro Corp's ownership in Engro Foods Lt. amounts to 8.49%, i.e. 58% of 50.5% of 29%. ________________________________________________________________________________________ Scenario-1: Assume that Engro Corp has 100% shareholding in Engro Polymer Ltd., and that it has effective control of each of the firms in the ownership pyramid, including Engro Foods. If Engro Corp steals one Rupee from Engro Foods and transfers to Engro Polymer, what will be its: i) net gain ii) loss? Hence, if Engro Corp steals one Rupee from Engro Foods, i) the net gain from doing so will amount to about 91.51 paisa (100 ps - 8.49 ps) and, ii) the costs will be 8.49 paisa. _____________________________________________________________________________________________ _____________________________________________________________________________________________ Scenario-2 (X % shareholding in Engro Polymer…N4 common stockholders of a business enterprise are said to be the residual owners which mean that they a. have thr rights to specific assets of the business b. are entitled to a dividend every year in which the business earns profit c. can negotiate individual comtrscts on behalf of the enterprise d. bear the ultimate risks and uncertainties and recieve the benefits if enterprise ownership.
- Mr Abdul Company face huge loss and Mr Ahmed Company also facing huge loss (Abdul Company + Ahmed Company) both joined together is treated as Select one: a. External reconstruction b. Merger c. Internal reconstruction d. AcquisitionCompanies X, Y and Z, parties to a consolidation, have the following data: X Co Y Co Z CoNet assets P400,000 P600,000 P1,000,000Average annual earnings 60,000 60,000 80,000The parties collectively agreed that the new corporation, AA Co will issue a single class of stock based on the earnings ratio. What is the stock distribution ratio to companies X, Y and Z, respectively?Ratio of exchange and EPS Marla’s Cafe is attempting to acquire the Victory Club. Certain financial data on these corporations are summarized in the following table. Marla’s Cafe has sufficient authorized but unissued shares to carry out the proposed merger. If the ratio of exchange is 1.8, what will be the earnings per share (EPS) based on the original shares of each firm? Repeat part a if the ratio of exchange is 2.0. Repeat part a if the ratio of exchange is 2.2. Discuss the principle illustrated by your answers to parts a through