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On1 January:
* Company X has a value of $50 million
* Company Y has a value of $20 million
* Both companies arewhollyequity financed
Company X plans to take over Company Y by means of a share exchange. Following the acquisition the post-tax cashflow of Company Xfor the foreseeable futureis estimated to be $8 millioneach year. The post-acquisition cost of equity is expected to be 10%.
What is the best estimate of thevalue of the synergy that would arise from the acquisition?
Suggested Answer: A
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9 comments · newest first
ME
Merissa
12 months ago
Wait, how do they even calculate synergy value? Sounds complicated!
DA
Darci
1 year ago
With $8 million cash flow and 10% cost of equity, I’d say $60 million makes sense.
GE
German
1 year ago
$100 million? That seems way too high for synergy!
CE
Cecilia
1 year ago
I think the synergy value is definitely more than $30 million.
CA
Cassi
1 year ago
Company X is valued at $50 million, while Company Y is at $20 million.
MA
Mariann
1 year ago
I'm a bit confused here. The question says User1 is the owner of Group1, so wouldn't they be the one who can perform the access reviews for User3?
AU
Audry
1 year ago
Hmm, I'm a bit unsure about the steps here. I think I need to drag the "Title ID" field to the Filters area, but I'm not sure what to do after that. I'll have to read through the instructions carefully.
RE
Reynalda
1 year ago
I'm a bit confused by this question. The options don't seem to be clearly differentiated, and I'm not sure how they relate to requirements approval. I'll need to carefully read through the explanations for each approach to try to identify the best match.
MI
Millie
1 year ago
I'm pretty confident about this one. The grub-install command is used to install the GRUB boot loader on a specific device, which in this case is /dev/sda. Option C clearly describes that, so I'll select that as my answer.