Rearden offers exchange ratio

Assignment Help History
Reference no: EM133436530

Question

Rearden Metal has earnings per share of $2. It has 10 million shares outstanding and is trading at $20 per share. Rearden Metal is thinking of buying Associated Steel, which has earnings per share of $1.25, 4 million shares outstanding, and a price per share of $15. Rearden Metal will pay for Associated Steel by issuing new shares. There are no expected synergies from the transaction.

If Rearden offers an exchange ratio such that, at current pre-announcement share prices for both firms, the offer represents a 20% premium to buy Associated Steel, then actual premium Rearden will pay will be closest to.

Reference no: EM133436530

Questions Cloud

Compare adjustable-rate mortgages to growth equity mortgage : Compare and contrast adjustable-rate mortgages (ARMs) to Growth Equity Mortgage (GEM). What are the advantages and disadvantages of each?
How have healthcare strategic plans : How have healthcare strategic plans moved from a physician-centric to a patient-centric focus?
Nominal rate of return on the bank account : how much would the nominal rate (%) of the return on the bank account have to be?
Different approaches appraiser uses to determine value : Explain the different approaches an appraiser uses to determine value. What are the strengths and weakness of each?
Rearden offers exchange ratio : If Rearden offers an exchange ratio such that, at current pre-announcement share prices for both firms,
Fixed-rate mortgage with annual interest : You obtain a 30-year fixed-rate mortgage with an annual interest rate of 5.75 percent. You need to show steps to get full credit.
Financial institution bond portfolio dropped : The value of a financial institution's bond portfolio dropped because of the change in interest rates,
How both public and private restrictions alter these rights : Discuss and give examples of each one of the RE Bundle of Rights and explain how both public and private restrictions alter these rights.
Great britain and france clung to this disastrous policy : What are the main reasons Great Britain and France clung to this disastrous policy?

Reviews

Write a Review

History Questions & Answers

  How does the cid treat the muslims

How does the Cid treat the Muslims (Moors)? Does he appear as a religious crusader against them?

  Capsule stain need to completely dry before

Do larger drops of Congo Red and bacteria at the end of a capsule stain need to completely dry before adding Maneval's stain?why and why not?

  Explain The Collapse of the Late Bronze Age

Explain The Collapse of the Late Bronze Age.Economic Factors are the sole reason for the Late Bronze Age Collapse.Climatic Change are the sole reason

  Should the government put people to death

Should the government put people to death? Do you agree with the prosecutor that the Death penalty is appropriate for certain types of crimes?

  What does hardin mean by conscience is self-eliminating

What does Hardin mean by conscience is self-eliminating? What is wrong with appealing to conscience to solve environmental problems?

  Identify the factors on both lists

Identify the factors on both lists and has contributed to the increase in its brand equity and the benefits they have gained from this increased position.

  Determine the organization of the article

Determine the organization of the article. How effective has the author been in making his or her point (as determined in 2) above)?

  Understanding of the world has progressed from ancient

How does Compte think out understanding of the world has progressed from ancient times to his own day? How does this related to his idea of what science is?

  How did european trade goods affect native americans lives

How did European trade goods affect Native Americans' lives? Was the acquisition of these trade goods worth Native Americans' changing their lifestyles?

  Elements of business strategy for an organization to compete

Brand strategy implementation is an important aspect of market development and a core element of any business strategy for an organization to compete.

  Discuss how these issues played out

In a Midwife's tale, it deals with themes related to women, gender, and in particular, chuldbirth in early American history.  Discuss how these issues played out in the period Martha Ballard lived.  In particular, you might want to discuss how relati..

  Defining and presenting visual examples

Write a 300-500 word essay defining and presenting visual examples (one artwork for each) of the following terms: hieratic scale, composite view.

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