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What is the offer value per share

Problem:

Garth's Micro Brewery, whose shares are currently trading at $40 per share, is considering acquiring Wayne's Beer Bottling Co. You have compiled a group of comparable transactions within the beer bottling space and have calculated that since 2004, acquisitions similar (or comparable!) to the one Garth's is currently considering have had transaction values (offer value of target plus any target debt, net of cash) that are, on average, 8.0x target's EBITDA.

Wayne's shares currently trade at $34 per share

Wayne's has 50 million diluted shares outstanding

Wayne's LTM EBITDA was $250 million

Wayne's Net Debt was $200 million

What is the offer value per share and the offer premium?

1. $32.33 per share; -4.9%

2. $36.00 per share; 5.9%

3. $44.00 per share; 29.4%

4. $52.94 per share; 55.7%

Now Priced at $25 (50% Discount)

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## Q : Calculating the npv of the investment

Calculate the NPV of this investment. (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.25.)