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Mid Term Exam - FACD - 19P186
Mid Term Exam - FACD - 19P186
Name…ANIRUDH CHAUHAN………………
Q4. Based on the synergy calculated above, please determine the value per share of DMS
Market Price of DMS share
Synergy Value
Value Per Share
Q5. If the deal could be settled at 25% premium for shares of DNS then calculate the followings
Swap Ratio (Based on Market Price)
Synergy gain to DMS
Synergy gain to DMS
Q6. Based on the swap ratio calculated above ascertain whether the deal be accretive or dilutive?
N 2020
PORATE DEALS
Marks – 30
Roll No…19P186……
perly.
gle Classroom)
(04 Marks)
Horizontal
Domestic
Friendly
Economies of scale
Operating
Reciprocal
Non-taxable
(04 Marks)
(8 Marks)
2023 2024 2025 2026
-43.9472499999999 -39.1990524999999 -33.6363447249999 -27.2159121252498
Debt 8.889
2024 2025 2026
399.9594375 419.95740938 440.95527984
WACC
11.41
Exhibit 1 DMS's Simplified Financial Statements, 2017-2021 ( $ millions)
Period ending 31st March 2017 2018 2019
Income statement
Net sales 289.9 304.1 316.4
COGS 259.4 273.1 284.1
Gross profit 30.5 31 32.3
Operating expenses 20.9 21.6 26.7
Depreciation and amortization 1.6 1.6 1.7
Operating profit 8 7.8 3.9
Interest expense* 0 0 0.3
Income taxes 2.8 2.7 1.3
Net income 5.2 5.1 2.3
EPS $1.30 $1.27 $0.58
Dividend $0.20 $0.20 $0.20
NWC
Broadway ($ millions)
2017 2018 2019
2025 2026
8.19 8.60
3.00 3.30
4.20 4.41
0 -0.94490417109
6.99 8.43
2025 2026
10.91 12.74
4.68 5.74
3.70 3.90
3.27 3.57
0.4 0.4
4.71 5.68