User Account

All Pages

Shareholders of alpha company

Assignment Help Finance Basics
Reference no: EM132530996

The shareholders of Alpha Company have voted in favor of a buyout offer from Beta Company.

Alpha Company information:

Price-earnings ratio = 9.5
Shares outstanding = 84,000
Earnings = $280,000

Beta Company information:

Price-earnings ratio = 31
Shares outstanding = 310,000
Earnings = $950,000

Alpha Company's shareholders will receive one share of Beta Company stock for every three shares they hold in Alpha Company.

What will the EPS of Beta Company be after the merger?

What will the P/E ratio be if the NPV of the acquisition is zero?

What must Beta Company feel is the value of the synergy between these two firms?

Reference no: EM132530996

Questions Cloud

Currently trading in market for bdt : The company has expected EBIT of BDT 50 million every year forever. The company currently has an all equity capital structure with 694,177 shares outstanding.
What does this imply about current interest rates : Assuming the lump sum payment reflects fair market value, what does this imply about current interest rates?
How much interest will you pay in total over the life : The bank has agreed to give you a mortgage for $400,000 to buy a new house. Current mortgage rates have an APR of 4% compounded semi-annually for a term of 25 y
Explain what is meant by the yield curve : Explain what is meant by the yield curve and briefly outline three theories to explain unequal yields at different maturities and how it is most often sloped.
Shareholders of alpha company : The shareholders of Alpha Company have voted in favor of a buyout offer from Beta Company.
What is the share price in the planning period : You are advising a company that is working to raise $100,000,000. You believe that it is best for the company to issue stocks and bonds to raise these funds
Determine the payback period for machine : Nova Products has a 5-year maximum acceptable payback period.
Fully hedge against the pound exposure : An FI has a 1-year 8% US $160 million loan financed with a 1-year 7% UK GBP 100 million CD. The current exchange rate is $1.60/GBP. If the current rate

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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