User Account

All Pages

Decides to resist your buyout? attempt

Assignment Help Finance Basics
Reference no: EM131473332

BAD? Company's stock price is $20?, and it has 2.0 million shares outstanding. You believe that if you buy the company and replace its? management, its value will increase by 40%. Assume that BAD has a poison pill with a 20% trigger. If? triggered, all target shareholderslong dash-other than the acquirerlong dash-will be able to buy one new share in BAD for each share they own at a 50% discount. Assume that the price remains at $20 while you are acquiring your shares. If? BAD's management decides to resist your buyout? attempt, and you cross the 20% threshold of? ownership:

a. How many new shares will be issued and at what? price?

Number of new shares issued is ______. ?(Round to the nearest? integer.)

The shares will be issued at ?$__________ per share. ?(Round to the nearest? cent.)

b. What will happen to your percentage ownership of BAD? Co.?

The percentage ownership will be ________?%. ?(Round to two decimal? places.)

c. What will happen to the price of your shares of BAD? Co.?

The new stock price will be ?$_______. ?(Round to two decimal? places.)

d. Do you lose or gain from triggering the poison? pill?

The gain? (loss) is ?$________. ?(Round to the nearest? dollar, positive if? gain, negative if? loss, zero if? neither.)

If you? lose, where does the loss go? (who benefits)? If you? gain, where does the gain come from? (who loses)?

Every other shareholder in the target firm gains ?$______ per share. ?(Round to the nearest? cent.)

Reference no: EM131473332

Questions Cloud

Oberon before-tax component cost of debt : Oberon, Inc., has a $25 million (face value) 10-year bond issue selling for 96 percent of par that pays an annual coupon of 8.40 percent.
Review the case of nagrampa v mailcoups inc : FACTS The franchisee and franchisor had entered into an agreement for a direct-mail advertising franchise. The agreement had a provision stating that disputes.
What is diddy''s cost of equity : Diddy Corp. stock has a beta of 1.3, the current risk-free rate is 4 percent, and the expected return on the market is 13.50 percent.
What should primary purpose of sport be in american society : What were some of the "versions of manliness" embedded into college football in the late 19th century.
Decides to resist your buyout? attempt : If? BAD's management decides to resist your buyout? attempt, and you cross the 20% threshold of? ownership:
Is reynolds permitted to vary the discounts its offers : R.J. Reynolds sells cigarettes, including such wellknown brands as Camel, Winston, Salem, and Doral. Cigarettes Cheaper! is a discounter and operates a chain.
How did the new american nation deal with slaves : Declaration of Independence-How did the new American nation deal with Slaves and Slavery?
How should the court rule on campfields allegation : Richard Campfield owns an auto-glass repair shop and holds fourteen patents for processes to repair or prevent windshield cracks. Although industry practice.
Prepare closing entries that gomez would record on december : Prepare the closing entries that Gomez would record on December 31. Unrecorded interest owed to the center totaled $275 as of December 31.

Reviews

Write a Review

Finance Basics Questions & Answers

  Mini case-bond and stock valuation

Alternatively, you are considering a purchase of Laissez-Faure's preferred stock. Assume that the preferred stock has a current market price of $42, a par value of $50, and dividend amount of 10% of par. Your required rate of return for investment..

  How long do you have to wait to become a millionaire

Just received $145,000. If invested all in a tax-free bond fund earing 6.2% compounded quarterly. How long do you have to wait to become a millionaire? Round to 2 decimal places.

  A vacuum oven for brazing small fittings

Emma runs a small factory that needs a vacuum oven for brazing small fittings. She can purchase the model she needs for $180,000 up front, or she can lease it for $4,200 per month. She can borrow at 7% APR, compounded monthly. Assuming that th..

  You have been offered a bond for 1250 the bond pays 60

you have been offered a bond for 1250. the bond pays 60 semi-annual interest and will mature in 12 12 years. if the

  Calculate the total deposits of the sinking fund

What is the semiannual payment to finance $200,000 in a sinking fund that pays 12% annual interest? Also, calculate the total deposits of the sinking fund and the interest earned by the semiannual payment.

  What is the difference between an insurance agent

What is the difference between an insurance agent and a broker? Explain, the law of large numbers. How do deductibles affect moral hazard?

  If the stock sells for 55 per share what is your best

if the stock sells for 55 per share what is your best estimate of cdbs cost of equity?stock in cdb industries has a

  Define risk tolerance and factors in setting risk tolerance

an ltl company that specializes in tourist attractions trips and stays for honeymooners is in deep financial trouble.

  Calculate the price and bey of a treasury bill which mature

Calculate the price, and BEY of a treasury bill which matures in 181 days, has a face value of $10,000, and is currently being quoted at a bank discount yield of 2.32%.

  What will be their monthly loan payment

The Sundarams are buying a new 3,500-square-feet house in Muncie, Indiana and will borrow $202,634 from Bank One at a rate of 6.472 percent for 15 years.

  Explain meaning of res ipsa loquitur and provide an example

Explain the meaning of imputed negligence and provide an example. Explain the meaning of res ipsa loquitur and provide an example. Briefly describe the standard of care to protect others from harm for each of the following liability situations.

  What price would an investor be expected to pay

A stock is expected to pay $0.80 per share every year indefinitely. If the current price of the stock is $18.90, and the equity cost of capital for the company that released the shares is 6.4%, what price would an investor be expected to pay per s..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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