help needed please check attached Back in early 2020, Legg Mason announced that it agreed to be acquired by Franklin Templeton. Read this press release:

Click here to Order a Custom answer to this Question from our writers. It’s fast and plagiarism-free.

please check attached 

Back in early 2020, Legg Mason announced that it agreed to be acquired by Franklin Templeton.  Read this press release:   https://www.businesswire.com/news/home/20200218005552/en/Franklin-Templeton-to-Acquire-Legg-Mason-Creating-1.5-Trillion-AUM-Global-Investment-Manager

Note all the key words they use for the strategic rationale:  “unlocks substantial value and growth opportunities;” “differentiated capabilities with modest overlap;” “balance across investment strategies, distribution channels, and geographies;” “shared vision;” “scale;” “$200 million in annual cost savings….majority…expected to be realized within one year.”  There is much more.

What would you estimate to be the Value per Share (per Legg Mason share) of the Legg Mason cost savings mentioned in the release? Any thoughts on who is getting majority of expected synergy value/share (buyer shareholders or Legg shareholders, assuming Legg is properly valued standalone)? Submit an excel sheet showing me your work, that’s it — keep it simple so I can follow.  The title of this assignment is also a link to submit your work.  Simply select the link, upload your excel file, and submit.  I will go over a solution for this tomorrow and you can build it yourself in class if you wish (yes, it should be easier since I’m going over) — it will be due by next weekend.

Key information:  Legg Mason closing stock price day before announcement = $40.72 ; Legg Mason shares outstanding were 87,165,000 ; Effective Tax Rate to use 26.0%; 100% Cash Financed.  Risk Free Rate assume was 3% at time.  Someone did a calculation of Legg’s WACC and it was 9.0%.

Place your order now for a similar assignment and have exceptional work written by one of our experts, guaranteeing you an A result.

Need an Essay Written?

This sample is available to anyone. If you want a unique paper order it from one of our professional writers.

Get help with your academic paper right away

Quality & Timely Delivery

Free Editing & Plagiarism Check

Security, Privacy & Confidentiality