User Account

All Pages

What exchange ratio between the two stocks

Assignment Help Business Management
Reference no: EM132364476

Harry's Department Store, Inc. has a market value of $600 million and has 30 million shares outstanding. Kay Discount Outlet has a market value of $200 million and 20 million shares outstanding. Harry's is thinking about acquiring Kay. Harry's CFO concludes that the combined firm with synergy will be worth $1 billion, and Kay can be acquired at a premium of $100 million.

a) If Harry's offers 15 million shares of its stock in exchange for the 20 million shares of Kay, what will the stock price of Harry's be after the acquisition?

b) What exchange ratio between the two stocks would make the value of stock offer equivalent to a cash offer of $300 million?

Reference no: EM132364476

Questions Cloud

Project management and sdlc : "Project Management and SDLC". The purpose of project management and the SDLC is to increase successful software implementation.
Write an essay narrating something fun that you have done : Write an essay narrating something fun that you have done and how it affected you. Write it for a specific audience such as your friend.
Produce graphical displays of the sampling distributions : MAS223 Applied Statistics-Murdoch University-Australia- Produce graphical displays of the sampling distributions of the measure of centrality and measure.
Perform an economic analysis to investigate materials : Monash University-Australia-CHE3166 PROCESS DESIGN- Perform an economic analysis to investigate which materials are the best choice for your process pipelines.
What exchange ratio between the two stocks : What exchange ratio between the two stocks would make the value of stock offer equivalent to a cash offer of $300 million?
What is the synergy from the merger : a) What is the Synergy from the Merger? What is the estimate of the value of the newly-merged firm?
Submit an expression at interest to the it capstone project : BIT371 - Capstone Experience - Melbourne Polytechnic - submit an Expression at interest (EOI) to the IT capstone Projects Group (ITCPG) in accordance
What percentage of the population shares your basic position : Compare three of the following four types to yours: Faith and Family Left, Next Generation Left, Business Conservatives, Steadfast Conservatives.
Construct a logical data model by transforming the data : Macquarie University, Australia - ISYS224 Database Systems Assignment - Database Design & Implementation. Construct logical data model by transforming the data

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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