Question and Problem Sets
smurf54
FCF_11th_edition_Chapter_26_Problem_2_template.xlsxChapter 26
| Chapter 26 |
| Problems 2, 4, 5, 10 |
| Input boxes in tan |
| Output boxes in yellow |
| Given data in blue |
| Calculations in red |
| Answers in green |
| NOTE: Some functions used in these spreadsheets may require that |
| the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. |
| To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak" |
| and "Solver Add-In." |
#2
| Chapter 26 | |
| Question 2 | |
| Input Area: | |
| Firm X | Firm Y |
| Total earnings | |
| Shares outstanding | |
| Per-share values | |
| Market | |
| Book | |
| Merger premium | |
| Output Area: | |
| Asset from X (book value) | $ - 0 |
| Asset from Y (market value) | $ - 0 |
| Purchase price of Y | $ - 0 |
| Goodwill | $ - 0 |
| Total assets XY = Total equity XY | $ - 0 |
#4
| Chapter 26 | |||
| Question 4 | |||
| Input Area: | |||
| Silver Enterprises | |||
| Current assets | Current liabilities | ||
| Other assets | Long-term debt | ||
| Net fixed assets | Equity | ||
| Total | $ - 0 | $ - 0 | |
| All Gold Mining | |||
| Current assets | Current liabilities | ||
| Other assets | Long-term debt | ||
| Net fixed assets | Equity | ||
| Total | $ - 0 | $ - 0 | |
| Market value of fixed assets | |||
| New long-term debt | |||
| Output Area: | |||
| Silver Enterprises - Post Merger | |||
| Current assets | $ - 0 | Current liabilities | $ - 0 |
| Other assets | - | Long-term debt | - |
| Net fixed assets | - | Equity | - |
| Goodwill | - | ||
| Total | $ - 0 | $ - 0 | |
#5
| Chapter 26 | ||
| Question 5 | ||
| Input Area: | ||
| After-tax annual cash flow | ||
| Teller market value | ||
| Penn market value | ||
| Discount rate | ||
| Stock offer | ||
| Cash offer | ||
| Output Area: | ||
| a. | V*k | ERROR:#DIV/0! |
| Cash cost | $ - 0 | |
| Equity cost | ERROR:#DIV/0! | |
| b. | NPV cash | ERROR:#DIV/0! |
| NPV stock | ERROR:#DIV/0! | |
| c. | ERROR:#DIV/0! | |
#10
| Chapter 26 | ||
| Question 10 | ||
| Input Area: | ||
| Firm A | Firm B | |
| Total earnings | ||
| Shares outstanding | ||
| Price per share | ||
| Acquisition price | ||
| Output Area: | ||
| Cost | $ - 0 | |
| Shares given up by A | ERROR:#DIV/0! | |
| a. | EPS | ERROR:#DIV/0! |
| b. | Old P/E | ERROR:#DIV/0! |
| New price | ERROR:#DIV/0! | |
| c. | P/E | ERROR:#DIV/0! |
| d. | Price | ERROR:#DIV/0! |
| P/E | ERROR:#DIV/0! | |
| At the current acquisition price, this is a | ||
| ERROR:#DIV/0! | acquisition. | |
