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FOR MORE CLASSES VISIT<br>www.tutorialoutlet.com<br><br><br>ACCT3013 Financial Statement Analysis<br>Mergers and acquisitions<br>Lenovo acquired all assets (without assuming debts) of IBM’s PC business in December 2004 at a<br>price of $1.25 billion. The transaction was completed in friendly terms in that Lenovo agreed to<br>retain all employees and that IBM agreed to continue its contribution throughout the postacquisition transition period.<br>
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Market Risk Premiumyour Dream/tutorialoutletdotcom FOR MORE CLASSES VISIT www.tutorialoutlet.com
Market Risk Premiumyour Dream/tutorialoutletdotcom ACCT 3013 Suppose that the PC business has a beta of 1.1, and the risk-free rate and market risk premium were 4.5% and 7% respectively. Using the above analyst forecasts and estimates, compute the “fair price” for IBM’s PC FOR MORE CLASSES VISIT www.tutorialoutlet.com ACCT3013 Financial Statement AnalysisMergers and acquisitionsLenovo acquired all assets (without assuming debts) of IBM’s PC business in December 2004 at aprice of $1.25 billion