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The termination fee is well within the range of reasonableness; here representing only 3.3% of MONY's total equity value, and only 2.4% of the total transaction value.
In fact, the value of those risky loans -- more than $12 billion -- was greater than the firm's total equity.
The total equity value of the deal is $960 million, or $820 million net of Compellent's cash.
The total gains of $9 billion in this merger represent a 44.6% increase in the total equity values of both companies.
The equity ratio is calculated by dividing a firm's total amount of equity by its total assets.
Firm's total assets: $17 billion.
Moreover, we show that as high-litigation risk firms face lesser chance of takeovers, this impairs firm governance and reduces equity value.
MV is the natural logarithm of a firm's market value of equity.
MV is the natural logarithm of a firm's market value of equity; VOLA indicates annual share price volatility.
The difference between the company's total enterprise value (market value of equity plus total debt) and this value of existing business constitutes the innovation premium, expressed as a percentage of the enterprise value.
The difference between the company's total enterprise value (market value of equity plus total debt) and this base value of the existing business constitutes the annual innovation premium, expressed as a percentage of the enterprise value.
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CEO of Professional Science Editing for Scientists @ prosciediting.com