Calculate the premium or discount that this offer represents

Assignment Help Accounting Basics
Reference no: EM133067883

Question - ABC Inc. offers R56.8 per share for TU Corporation's shares which are trading at R43.6 per share. Calculate the premium or discount that this offer represents. Give your answer to 2 decimal places.

Reference no: EM133067883

Questions Cloud

Describe linear hierarchical difference between them : Write a short paragraph on various R-objects and describe the linear hierarchical difference between them.
Probability distribution of returns conditional : Suppose today's volatility were estimated to be s, and the realized return was u=-2%. Which of the following values of s would yield the highest likelihood?
Tranche of the abs and the abs cdo : An ABS, based on portfolios of subprime mortgages, consists of a senior tranche (owed 25% of the cash flow), a mezzanine tranche (owed 35%) and an equity tranch
Planning for total capital expenditures : What amount is the company planning for total capital expenditures if it plans to borrow $4,000,000 in new debt?
Calculate the premium or discount that this offer represents : ABC Inc. offers R56.8 per share for TU Corporation's shares which are trading at R43.6 per share. Calculate the premium or discount that this offer represents
What is the 1-year interest rate : Assume that the real risk-free rate is 2% and that the maturity risk premium is zero. If a 1-year Treasury bond yield is 5% and a 2-year Treasury bond yields 7%
Determine the cost of direct materials used in production : Materials inventory, November 1 74,000. Determine the cost of direct materials used in production by Sepulveda during the month ended November 30
What to do with the reinvestment rate : Get the PV of all three bonds then sum them up. However, I am not clear on what to do with the reinvestment rate.
Impact of poor network design on individuals and businesses : What are the two network types that you would choose? Why? What is the impact of poor network design on individuals and businesses?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd