Corporate Finance

BCO315 Corporate Finance Group B – Fall 2020 – Final Assignment – by Miguel Corte-Real
Task: Final Assignment (50% of course grade)
You are asked to answer all the questions in the proposed four cases.
This task assesses the following learning outcomes:
• Discuss and analyze the benefits of leasing versus ownership of assets.
• Analyse the concepts underlying the firm’s cost of capital.
• Demonstrate a deep understanding of the theory and practices of mergers and acquisitions
• Critically evaluate financial distress.
LAUNCH: WEEK 7 / DELIVERY: WEEK 13 Sunday, January 17th, 2021, 23:59hrs ON MOODLE Submission file format: Word document with all the answers, clearly identifying each case separately.

CASE 3 (25 points)

Don't use plagiarized sources. Get Your Custom Essay on
Corporate Finance
From as low as $9/Page
Order Essay

ABC Corporation is analyzing the possible acquisition of XYZ Company. There are two alternatives for  ABC: 1) to use cash or 2) stock as payment. Both firms have no debt. ABC believes the acquisition will increase its total after-tax annual cash flow by €1.3 million indefinitely. The current market value of  XYZ is €27 million, and that of ABC is €62 million. The appropriate discount rate for the incremental cash flows is 11%. ABC is trying to decide whether it should offer 35% of its stock or €37 million in cash to XYZ’s shareholders.


a. What is the cost of each alternative? (5 points)

b. What is the NPV of each alternative? (5 points)

c. Which alternative should ABC choose? (5 points)

d. What are some important factors in deciding whether to use stock or cash in an acquisition? (5 points)

e. Explain what defensive tactics the managers of XYZ Company could use to resist acquisition. (5 points) For more information on Corporate Finance check on this:

Impact of International Actors

The Homework Writings
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Our Advantages

Plagiarism Free Papers’s team of writers write all papers from scratch. We deliver 100% original, unique papers. That’s what makes us the best custom homework writing service

Free Revisions

We provide unlimited free revisions to all customers and on all papers. Try The Homework Writings today for the best custom homework writing service and experience in the industry.

Title-page gives clients title pages free of charge. Your only job is to fill out our order form. We will handle the rest.


As the leading essay writing service, we never submit any paper without a reference/bibliography page. We do this free of charge too.

Originality & Security

At, we take great pride in delivering only high-quality 100% original papers to all our clients. We also never share any of our clients’ information with third parties. Your data is safe with us.

24/7 Customer Support

No other custom homework writing service has a friendly, always available customer support team to respond to clients like us.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Why outsource our services

We have the best customer support team for your essay writing needs.


Flexible Pricing

You won’t find any other custom homework writing service with pricing as flexible and affordable as ours.


Admission help & Client-Writer Contact

We provide a direct line of communication with our writers for the best writing experience.


Paper Submission

As the leading custom homework writing service, we take deadlines very seriously. You will have your paper submitted on time without any delays.


Customer Feedback

We truly value your feedback, good or bad, and always use your feedback to help us provide you with an even better custom homework writing service