Wells stockholders own after the transaction

Assignment Help Business Management

Reference no: EM133638032

Question

Dubon Inc. is considering the acquisition of the smaller Wells Co. Dubon has 4,750,000 shares outstanding that are currently selling for $47.85. The Wells Co. has 2,350,000 shares outstanding that are selling at $35.65. If Dubon offers the shareholders of the Wells Co. a number of shares based on the current share prices, what portion of the new firm will the Wells stockholders own after the transaction? (The answer is a percentage, round to two decimal places, e.g. 42.75)

Reference no: EM133638032

Questions Cloud

What is the purchase price of the property : If the first payment is due on the date of purchase and interest is 9% compounded quarterly, what is the purchase price of the property?

Consumer mortgages like home loans : Commercial mortgages are typically much shorter than consumer mortgages like home loans, so the lender has offered you a 10-year term.

Calculate Zonks weighted-average cost of capital : Determine the weight on debt capital that should be used to calculate Zonk's weighted-average cost of capital.

Treasury strips would produce one synthetic : What package Treasury STRIPs would produce one "synthetic" 13.5% Debenture?

Wells stockholders own after the transaction : What portion of the new firm will the Wells stockholders own after the transaction?

Part of the interview process : you may be responsible for pulling key financial data for the department head and completing some simple financial analysis. As part of the interview process,

Risk and potential reward when investing : What is the general relationship between risk and potential reward when investing?

Stock market is attaching to synergies from merger : Estimate the value that the stock market is attaching to synergies from this merger. Is the market expecting the merger to be value enhancing.

High-margin business positioned at luxury end of market : PAD runs high-margin business positioned at the luxury end of market and commands a significant premium for its items and for Palate-Able Delights experience.

User Account

All Pages