21: Mergers, Acquisitions and Corporate Control
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mini case
ASSIGNMENT
1 Determine the amount Jackson Enterprises is willing to
pay in terms of goodwill.
2 If JE’s shares are currently trading at $62.43, then how
many shares should JE offer for every share of MSI?
3 Assuming that MSI will be treated as a separate
reporting subsidiary following the merger, develop the
balance sheet for the subsidiary.
4 Calculate the Herfindahl Index (HI) for the industry both
before and after the proposed merger.
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