Economics Homework Help

I’m working on a finance discussion question and need an explanation and answer to help me learn.

Philip Morris, Incorporated: Seven-Up Acquisition (A)

1. What is Philip Morris’s acquisition strategy? Is it appropriate for a firm like Philip Morris?Why?

2. Does Seven-Up fit Philip Morris’s criteria for an acquisition?
3. What is the maximum price that management should pay to acquire Seven-Up? (Be prepared
to describe the methods you used to determine this price.)
4. What is the minimum price Seven-Up management is likely to consider?