Mergers & Acquisitions Essay Example | Topics and Well Written Essays - 1000 words

Mergers & Acquisitions - Essay Example The earnings per share is 15.5p, which must be maintained. Therefore x/15.5 =8, hence x = 124p or 1 pound and 24 pence. This is the price of 1.24 pounds at which Smith plc may be valued for purpose of the merger if a P/E ratio of 8 must be achieved. On this basis, the average price of a share in a merged entity of both Amanda plc and Smith plc works out to {(1.24 + 2.40)/2} = 1.82 pounds, which is the market price that must be set for the share. In such a case, this would result in a lowering of the Amanda plc share value in the market by (2.40 – 1.82) = 0.58 pence, while in the case of Smith plc share holders, the value of their stock rises by (1.82 -1.03) = 79 pence. Therefore, it may be noted that the second option appears to be the better choice, since it entails less losses for Amanda plc shareholders and more gains for Smith plc shareholders, in terms of share values. In order to assess the earnings on the shares that can be estimated while also maintaining some growth in the next three years, it may be noted that Amanda plc is currently on a growth track but will decline in the next three years, but for Smith plc future growth prospects look good but the limitation is finances. The current rate of return on the Smith plc shares is (15.5 X 100/103) – 15%. On the basis of current earnings per share for Smith plc being 15.5 pence, if a growth rate of at least 15% is desired in 3 years with a desired rate of return of at least the current 15%, then the current fair market value should be at least 1.02 pounds. (ww.moneychimp.com). This is more or less the current value of the Smith plc stock (1.03 pounds) and a growth rate of 15% can be achieved although the PEG ratio is on the higher side. The P/E ratio in this case will be 9.7 and the PEG ratio will be 0.64. On the other hand, if a growth rate of 30% is desired with a similar 15% rate of ret urn on Smith plc stock, then the fair market value that must

Venue Management for Events. The Emirates Stadium Essay

Venue Management for Events. The Emirates Stadium - Essay Example This tier can carry a total of 2, 222 spectators in total. The box prices start at ?65,000 per year inclusive of V.A.T. and caters for all the home league games and any other played at the Emirates stadium. The Emirates Stadium (Picture courtesy of Arsenal.com) The Diamond Club is the next tier and represents the most exclusive area in the stadium. This is a place that hosts only invited guests and the ticket prices are ?25,000 in advance plus an additional ?25,000 a year. The high demand for tickets in London coupled with the fact that the people living in London are relatively wealthy implies that the ticket sales from the premium seating and the corporate boxes are very high (Chung, & Hwang, 2010). The picture measures 105 by 68 meters with a total grass area of 113 by 76 meters running from north to south. The players’ tunnel and the dugouts are placed on the western side of the pitch just below the main television camera. The away fans are placed in the south- eastern cor ner of the lower tier. The configuration of the away fans can however be expanded from the current 1,500 seats to about 4,500 depending on the demand. This extension has been provided for by the lower and the upper tiers. This stadium has enough space for the travelling fans as required by the Football Association (FA). An aerial view of the Emirates Stadium (Picture courtesy of Arsenal.com) The upper tier has been contoured in order to leave some open space in the ground corners and the roof is equally inward canted. These features are meant to facilitate the flow of air and sunlight to the pitch. These are very vital elements because both players and fans need a good supply of both light and fresh air. The... The paper tells that Emirates Stadium also inbuilt conference holes that accommodates various events like music shows, wedding ceremonies and big meetings. The stadium also well structured roofs that provide shade and shelter to the fans with the centre part left open to allow penetration of sunlight into the pitch. The environment surrounding the stadium is well ventilated as depicted by the contoured walls to provide goods circulation of air. The regions surrounding the stadium are highly secured with security inspection starting at the railway stations before journeying towards the pitch. Entrance of fans is high controlled as the technology system at the gates only allows individuals with smartcards to get access of the stadium during matches. The interior of the Emirates Stadium is highly beautified with green coloured grasses on the pitch and conspicuous red colours dominating the stadium. In addition, the stadium is installed with high tech cameras and big television screens t hat offer exemplary view for distant fans within the stadium. The stadium also has inbuilt catering section and food shop that provide easy meal to fans at very affordable prices. Accessing the stadium is somehow very easy as can be evidenced by good network of roads and railway lines just passing near the stadium. In order to ensure further security, parking is never allowed around or near the stadium and vehicles is usually parked at residential streets that are meters away from the stadium thereby compelling fans to walk for few minutes to the stadium.