Evaluate what is the value per common share

Assignment Help Finance Basics
Reference no: EM132027294

Question: Panda Products is evaluating whether it should make an offer for Orman Industries. Panda estimates the value of Orman at $250 million. Orman has debt of 25 million, preferred stock of $15 million, and outstanding common shares of 30 million. Based on this information, what is the value per common share?

Reference no: EM132027294

Questions Cloud

What are the bonds worth today : Pacheco Inc. issued convertible bonds 10 years ago. Each bond had an initial term of 30 years, had a face value of $1,000, paid a coupon rate of 11%.
What does desirable treatment look like : In the United States, there is a common proverb-the golden rule-that reads, "treat others as you want to be treated."
What coupon rate will result in a yield to maturity : Pandora Media plans to issue original issue discount (OID) bonds with a 20-year maturity, $1,000 par value, and initial yield to maturity of 8%.
Explain the fundamentals of wlan technology : The Baypoint Group (TBG) needs your help with a WLAN proposal. GHS is a chain of sporting good stores that cater to the sport of soccer.
Evaluate what is the value per common share : Panda Products is evaluating whether it should make an offer for Orman Industries. Panda estimates the value of Orman at $250 million.
What was caterpillar book debt-to-value ratio : a. What was Caterpillar's book debt-to-value ratio? Please show explanation for understanding.
Determine what is the firm required return : Palladian Records has a beta of 0.8. The current T-bond rate is 2.4%. The annual return on the stock market during the past 3 years was 7.7%.
How do you calculate the prepayment penalty : If there is a 2.5% prepayment penalty for repaying the loan in the first 5 years, what is the expected borrowing cost?
Compute the relative risk of the two firms : Integrativ; Leverage and Risk Firm R has sales of 100,000 units at $2.00 per unit, variable operating cost of $1.70 per unit, and fixed operating cost of $6,000

Reviews

Write a Review

Finance Basics Questions & Answers

  How does the time value of money work

How does the time value of money work

  Who are the three primary stakeholders in the proposal

Who are the three primary stakeholders in this proposal, and what do you predict their positions will be relative to this proposal?

  What is the effective interest rate in the first two years

A mortgage broker is offering a 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only.

  Who would gain or lose from the double-r halts operations

Who would gain or lose from the Double-R halts operations, sells its fixed assets for $6, and converts net working-capital into $20 cash. It invests its $26 in Treasury bills.

  Large food processor also distributor is considering

A large food processor also distributor is considering expansion into a chain of privately owned sports shoe outlets.

  Calculate nwc''s free cash flow for 2009.

Based on the final forecast, calculate NWC's free cash flow for 2009. How does this FCF differ from the FCF forecasted by NWC's initial "business as usual" forecast?

  Estimate price of the company stock

The Company has determined that earnings and dividends will decline at a rate of 5 percent yearly. Assume that Ks=11% and Do=$2.00.

  Suspicious of steroid use among olympic athletes

In 2008, the Gallup poll asked people whether they were suspicious of steroid use among Olympic athletes. Thirty-five percent of respondents

  Although the net present value of the first 5 years cash

although the net present value of the first 5 years cash flow is a positive 2.3 million the projects overall net cash

  Find the base value of stock

Edward purchased stock last year as follows: In April of this year, Edward sells 80 shares for $250. Edward cannot specifically identify the stock sold. The basis for the 80 shares sold is

  What is purpose of traditional war clause in life insurance

What is the general purpose of traditional War Clause in life insurance? Explain five key responsibilities of Agent/Insured relationship.

  Post-money values of the venture

After its last round of financing, a venture had 400,000 shares outstanding and a post-money value of $2 million. If the entrepreneur is confident the company is currently worth 25% more and needs to raise $500,000, how many shares will he sell? W..

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