Introduction to Corporate Finance

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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