User Account

All Pages

Is target company expensive to purchase

Assignment Help Accounting Basics
Reference no: EM132749513

Question: Acquirer purchases 100% of target by issuing additional stock to purchase target shares

No premium is offered above target's current share price

Given:

Acquirer Target

Share Price P20 P40

P/E ratio 8x 5x

EPS Next Year P3 P6

Shares Outstanding 6000 2000

Requirement: 1. Compute the accretion/dilution per share

2. Compute the accretion/dilution in %

3. What is the result of the deal?

4. Is target company expensive to purchase? Why?

Reference no: EM132749513

Questions Cloud

Explain and critically evaluate the malaysia digital taxes : COVID 19 pandemic in Malaysia is part of worldwide pandemic. The virus has reached Malaysia in late January 2020 from China arriving Johor via Singapore.
Which section of authoritative guidance outlines criteria : ABC Corp., an issuer, is planning to implement an employee share purchase plan. Substantially all employees that meet the limited employment qualifications.
What is the purpose of presenting accumulated depreciation : What do you think is the purpose of presenting Accumulated Depreciation in the Balance Sheet? How are you going to differentiate it to depreciation Expense?
Describe the content of the website you have selected : As you are aware this course does not have a text book. This assignment is to ensure you can access and know how to source the most recent government payroll.
Is target company expensive to purchase : Acquirer purchases 100% of target by issuing additional stock to purchase target shares. Compute the accretion/dilution per share.
What would you look for as a red flag : In the expenditure cycle, what would you look for as a red flag or potential indicator that a vendor is short supplying you? The response must be typed.
Record the treasury stock transactions : Record the treasury stock transactions (given above) under the cost method. (Credit account titles are automatically indented when amount is entered.
Should ligaya management proceed with capital structure : LIGAYA, which has no current debt, has a beta of 0.95 for its ordinary shares. Management is considering a change in the capital structure to 30 percent debt.
What is the required rate of return for a firm : What is the required rate of return for a firm with a beta of 1.35 when market return premium is 14% and the risk free rate is 5%.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How does mental accounting impact consumer decision making

What is mental accounting and how does it impact consumer decision making? How might a company take advantage of consumers' mental accounting?

  The corn corporation produces a product that passes through

the corn corporation produces a product that passes through two processes. during april the first department

  What is the carrying amount of security

Assume that Security A is a debt security that was purchased at a discount. What is the carrying amount of Security A at December 31, 2015

  Identify the sales promotion

For your assignment, locate a sales promotion and explain what you think the company is trying to communicate to its target audience. Prepare a ½-1 page essays that summarizes the sales promotion. Make sure that you identify the sales promotion th..

  What is teds adjusted basis in his partnership interest

Ted contributes a nondepreciable asset to the TK partnership in exchange. What is Ted's adjusted basis in his partnership interest after the contribution?

  ACCT 311 Intermediate Accounting Assignment

ACCT 311 Intermediate Accounting Assignment Help and Solution, University of Maryland Global Campus, USA. Calculate Net Periodic Pension Cost

  What is the return on equity

Oscar's Dog House has a profit margin of 5.6 percent, a return on assets of 12.5 percent, and an equity multiplier of 1.49. What is the return on equity?

  A retailer purchased some trendy clothes that have gone

a retailer purchased some trendy clothes that have gone out of style and must be marked down to 40 of the original

  Prepare an executive summary paper on reporting

Prepare an executive summary paper on reporting and disclosure issues related to segment and NCI within a 10K

  Prepare journal entries to record uncollectible accounts

Dapper Hat Makers Company sells merchandise on credit. During the fiscal year ended July 31, the company had net sales of $2,300,000.

  Prepare the cash flows from investing activities

Prepare the "cash flows from investing activities" section of ALZ's statement of cash flows for the year ended 31 March 2014

  Prepare an amortization schedule that suitable for lessee

Using the spreadsheet Lease Amort Schedule, prepare an amortization schedule that would be suitable for the lessee for the lease term

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