How many total shares will be outstanding in merged firm

Assignment Help Financial Management
Reference no: EM131899970

Firm K is planning on merging with Firm L. Firm K currently has 5,500 shares of stock outstanding at a market price of $28 a share. Firm L has 500 shares outstanding at a price of $16 a share. The merger will create $600 of synergy. Firm K plans to offer a sufficient number of its shares to acquire Firm L at an acquisition cost of $8,200. How many total shares will be outstanding in the merged firm?

Reference no: EM131899970

Questions Cloud

Letter of transmittal in the written research : 1. The assumption that data can be described by a straight line passing through the data array is called
Define ways a firm can try to increase the overall value : What are some of the ways a firm can try to increase the overall value of its technology and its likelihood of becoming the dominant design?
What is meant by the term industrial policy : What is meant by the term industrial policy? How do governments attempt to create comparative advantage in sunrise sectors of the economy?
Create portfolio equally as risky as the market : You want to create a portfolio equally as risky as the market, and you have $500,000 to invest.
How many total shares will be outstanding in merged firm : Firm K is planning on merging with Firm L. How many total shares will be outstanding in the merged firm?
How economies of large-scale production affect world trade : How does Leontief paradox challenge the overall applicability of factor-endowment model? How economies of large-scale production affect world trade patterns?
What is business process reengineering : What is business process reengineering? How is it different from incrementally improving a process?
What advice do you have for our students : Watch the videos from Karl McDonnell, CEO of Strayer University, titled "What are some of the most important lessons you've learned in your professional career?
What is rate of return on each bond : One bond has a coupon rate of 6.4% , another a coupon rate of 8.2%. what is the rate of return on each bond?

Reviews

Write a Review

Financial Management Questions & Answers

  MIRR for projects-indicate the correct adopt-reject decision

The following project is being considered in this year's capital budget. Calculate the NPV , the IRR and the MIRR for the projects and indicate the correct adopt-reject decision. Your firm's cost of capital is 10%.

  Determine the beta coefficient for stock

Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: = 10.75%; rRF = 3.9%; rM = 8%.

  Foreign exchange futures pricing

Foreign Exchange (FX) Futures pricing. Compute the 180-day US/MP futures price. What should be the current BP/MP spot exchange rate (or cross rate)?

  Calculate the net interest margin for the bank

A bank borrows money at the 5 year CD rate found in the WSJ with daily compounding. It loans money at the 15 year mortgage rate in the paper which is compounded monthly. Calculate the net interest margin (the difference in the effective rate on the 1..

  Mutual fund and what is the expected return

Assume that you manage a mutual fund with an expected rate of return of 18% and a standard deviation of 34%. The T-bill rate is 5.5%. An investor wants to invest in your fund and T-bills such that the standard deviation of the investor’s total portfo..

  Constant growth valuation

CONSTANT GROWTH VALUATION-What is the stock’s current value per share?

  What is the incremental operating profit the firm

What is the incremental operating profit the firm can expect to earn from the ad? campaign?

  Deposited the inheritance in savings account

After receiving an inheritance of $50,000 on her 21st birthday, Kelly deposited the inheritance in a savings account with an effective annual interest rate of 4%. She decided to make regular deposits, beginning with $1,000 on her 22nd birthday, and i..

  Is the less likely to benefit from takeover activity

Which of the following parties, according to academic research, is the less likely to benefit from takeover activity?

  Organizational vision-operating plans and actual operations

Describe the difference between organizational vision, core competencies, Organizational Strategies, Operating Plans and Actual Operations rations

  Zero-coupon bond-using semiannual convention

The projected bond yield is 8%. If the par value is ?$1,000?, what is the? bond's price using a semiannual convention if

  Compute the percentage of increase in owners equity

A tourist from the United States wants to purchase a painting in Mexico City. The price of the painting was 5,927 pesos plus a shipping charge of 387 pesos to send the painting to the tourist's home. Warm Winters Linen, Inc. had ending inventory this..

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