OE Qs remaining Flashcards by Han BB | Brainscape

Q

How do you value NOLs in a target?

A

create a schedule that estimates amt of NOLs to be used each year
for each future year to determine savings, NOL estimate x effective tax rate of pro forma company
discount that value w pro forma co’s WACC
sum to determine present value of NOLsW

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Q

Which cos tend to issue stock for acqs?

A

those w high P/E relative to others

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Q

What are typical traits of merger of equals?

A

stock swap
shared control of board and management
ownership close to equal split
low to no premium

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