Economics Homework Help
Miami Price Determination for A Target Company in Merger and Acquisition Discussion
I need some assistance to complete an executive summary document. The one page paper should be done in APA format, originality score of 20% or less and include the three required references provided and at least two additional scholarly articles or academic journals. The three mandatory references are Chapter 19 in the textbook (Berk, J. B., & Demarzo, P. M. (2014). Corporate finance (3rd ed.) and the Brotherson, Eades, Harris, & Higgins (2014) and Haunschild (1994) articles attached to the assignment below.
Complete an environment scan and Internet search to determine how investment bankers look at comparable acquisitions to determine prices for a target company in a merger and/or acquisition. Consider your chosen target company (21st Century) and create a one-page executive summary document that includes the following elements:
1/ Explain the various guidance and/or pricing benchmarks you found regarding a reasonable price to pay for acquisitions of publicly traded firms comparable to your target company (21st Century).
2/ Explain the process you would use to calculate the merger premium for your target company. Provide a rationale for why the merger premium should be computed using the share price 30 days before the initial announcement of the acquisition.
3/ Explain how the discounted cash flow (DCF) analysis and the net present value (NPV) calculation will be useful for the acquisition of your target company.