Maurice Tutor

(5)

$15/per page/Negotiable

About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 398 Weeks Ago, 1 Day Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 06 Jun 2017 My Price 15.00

Word Perfect Corporation

In April 1994, Novell, Inc. announced its plan to acquire WordPerfect Corporation for

$1.4billion.

Atthetimeoftheacquisition,therelevantinformationaboutthetwo companies was as follows:

 

 

Novell

WordPerfect

Revenues

$1,200.00

$600.00

Costof Goods Sold (w/o Depreciation)

57.00%

75.00%

Depreciation

$42.00

$25.00

Tax Rate

35.00%

$25.00%

CapitalSpending

$75.00

$40.00

WorkingCapital(as%ofRevenue)

40.00%

30.00%

Beta

1.45

1.25

ExpectedGrowth Rate in Revenues/EBIT

25.00%

15.00%

ExpectedPeriod of High Growth

10years

10years

GrowthrateAfterHigh-GrowthPeriod

6.00%

6.00%

BetaAfterHigh-Growthperiod

1.10

1.10

 

Capital spending will be offset by depreciation after the high-growth period. Neither firm has any debt outstanding. The treasury bond rate is 7%.

a. Estimate the value of Novell, operating independently.

 

b. Estimate the value of WordPerfect, operating independently. c. Estimate the value of the combined firm, with no synergy.

d. As a result of the merger, the combined firm is expected to grow 24% a year for the high-growth period. Estimate the value of the combined firm with the higher growth.

e. Whatis thesynergyworth? Whatisthe maximumpriceNovell canpayfor WordPerfect?

Answers

Maurice Tutor
(5)
Status NEW Posted 06 Jun 2017 12:06 AM My Price 15.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- Â-----------  -----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------pos-----------ted----------- so-----------lut-----------ion-----------. P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll

Not Rated(0)