Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question 1.
The shareholders of Péril voted in favor of an offer of takeover from the Danger company. Here is information on each of the companies.
Peril Danger
Price-earnings ratio 3.5 14
Shares outstanding 40,000 120,000
Profits $200,000 $450,000
Peril shareholders raise one Danger action for each set of three shares of Peril they hold.
a. What will Danger's earnings per share be after the combination? What will be the price-earnings ratio if the NPV of the acquisition is zero?
b. In the danger opinion, what should be the value of the synergy between the two businesses? Explain how it is possible to reconcile your answer with the decision of two companies to merge.
Jiminy's Cricket Farm issued a 30-year, 7.4 percent semi annual bond 6 years ago. The bond currently sells for 85 percent of its face value. The book value of this debt issue is $108 million.
The Zuri Co. needs to raise $65.6 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. What are the required proceeds from the sale necessary for the comp..
What makes you think that you have developed a viable business plan? Describe three reasons that you think are the most important. In detail.
Eggspressions is experiencing rapid growth. The company just paid a dividend of $1.94 and expects dividends to grow at 16% per year for the next 11 years before leveling off at a 4% growth rate into perpetuity. If your minimum required return on the ..
Large Industries annual bonds are selling at 95.70 (i.e., the price is $957 for the $1,000 bond). There are 8 years remaining until maturity on the bonds and the yield to maturity is 6.25%. Find the coupon rate.
If IBM stock is $97 on the expiration date (third Friday of July 2009), what is the total payoff on the two options in your portfolio?
Your company sold 5 year zero coupon bonds with a YTM of 5percentage. If the tax rate is 21percentage, what is the actual cost of borrowing for the company?
If the risk-free rate of return is less than the inflation rate, the real rate of return is negative. If the actual rate of return on an investment portfolio is constant from year to year, the standard deviation of that portfolio is zero. Most assets..
Cash conversion cycle Metal Supplies is concerned about its cash management. On average, the day's sales in inventory (duration of inventory on shelf) is 90 day. Accounts receivable are collected in 90 days, while accounts payable are paid in days. W..
You are saving for retirement. To live comfortably, you decide you will need to save $3 million by the time you are 65.
What are some of the unique strategic challenges that Christian universities face? How has the unprecedented Covid-19 pandemic crisis impacted your life?
Keller Cosmetics maintains an operating profit margin of 8.45% and a sales-to-assets ratio of 3.80. It has assets of $590,000 and equity of $390,000. Interest payments are $39,000 and the tax rate is 40%. What is the return on assets? What is the ret..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd