1. Competition Bikes and Canadian Bikes
There are five potential capital structures that Competition Bikes could implement to support either merging or acquiring Canadian Bikes. ... If Competition Bikes were to acquire Canadian Bikes rather than merge, the company would take over Canadian Bikes entirely. Canadian Bikes would no longer exist and would operate as Competition Bikes. ... However, Canadian Bikes is only currently worth $212,138. Competition Bikes would be investing $73,862, or approximately 26%, more than what Canadian Bikes is actually worth. ...
- Word Count: 1314
- Approx Pages: 5
- Has Bibliography
- Grade Level: High School