Business, 29.04.2021 01:40 leannehounschell
Question 4. Berkshire offered $142 million in the deal. If you compute your continuation value as a growing perpetuity, at what (approximate) growth rate would you obtain a value of $142 million for the assets? (Note: this could be negative.) Given your analysis (i. e., in light of this implied growth rate), what is your assessment of the deal? Recall that there is also a financial component of the deal. Berkshire is offering Media General a $400 million loan at an 11.5% discount to face value (meaning that Berkshire will receive at least $46 million in net present value from the loan). In addition, Berkshire is receiving warrants that would allow it to purchase 4.65 million of Media General’s shares for $0.01 per share. At the current stock price of $4.18, this would amount to $19 million in value if Berkshire exercised the right immediately. Do these extra sources of value change your opinion? Why or why not? (Note: there is not necessarily a "right" answer here, but a well-supported position is expected.)
Answers: 2
Business, 22.06.2019 07:10
Refer to the payoff matrix. suppose that speedy bike and power bike are the only two bicycle manufacturing firms serving the market. both can choose large or small advertising budgets. is there a nash equilibrium solution to this game?
Answers: 1
Business, 22.06.2019 16:40
Consider two similar industries, portal crane manufacturing (pcm) and forklift manufacturing (flm). the pcm industry has exactly three incumbents with annual sales of $800 million, $200 million and $100 million, respectively. the flm industry has also exactly three incumbents, with annual sales of $500 million, $450 million and $400 million, respectively. which industry is more likely to experience a higher level of rivalry?
Answers: 3
Business, 22.06.2019 18:50
Retirement investment advisors, inc., has just offered you an annual interest rate of 4.4 percent until you retire in 40 years. you believe that interest rates will increase over the next year and you would be offered 5 percent per year one year from today. if you plan to deposit $13,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?
Answers: 3
Business, 23.06.2019 00:30
2. which of the following statements about interest is true? a. interest is a one-time fee that you pay for lending money. b. interest is expressed as a percentage of the amount you are borrowing. c. because interest rates tend to be small numbers, they typically don't have much effect on the price of the goods you're purchasing. d. interest is a penalty that you pay when you don't pay your bills on time.
Answers: 1
Question 4. Berkshire offered $142 million in the deal. If you compute your continuation value as a...
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