求解一道题

Fiona plc is a multinational established in1998 and has significant cash balances. XP plc and Angela plc both approachFiona plc with takeover offers.

Consider the company details as below:

XP plc feels that if Fiona plc (Targetcompany) were to be acquired the strength of its distribution networks wouldincrease the growth rate of Fiona plc to 9%.

Angela plc is more interested in a particularresource Fiona plc has proprietary access to. If Fiona plc was acquired, Angelaplc would have access to the resource leading to the EPS of Angela plcincreasing to 58p (assume a constant dividend payout ratio).

The following offers have been made:

Predator 1: XP plc 1 share for every six Fionaplc shares

Predator 2: Angela plc 1 share for every fourFiona plc shares

The cost of equity capital for both firms is11%

Required:

a) What is the value of aFiona plc share in its currentform?      

b) What value would beadded if XP plc were successful? Alternatively, what value would be added ifAngela plc was successful?           

c) If XP plc wassuccessful what would be the change in wealth for the two sets ofshareholders?