What is the cost to company a

Assignment Help Finance Basics
Reference no: EM133111258

Company A makes an offer to the shareholders of Company B to buy 2 million shares at $38 each. The current stand alone value of Company B is $68.75 million. What is the cost to Company A (premium) Answer in millions?

Reference no: EM133111258

Questions Cloud

Bond valuation? relationships : The 16?-year, ?$1,000 par value bonds of Waco Industries pay 11 percent interest annually. The market price of the bond is? $905?, and the? market's required yi
What is the yield to maturity on bond : The Saleemi? Corporation's $1,000 bonds pay 6 percent interest annually and have 8 years until maturity. You can purchase the bond for ?$955.
What is the spread possible payoff : a. What type of spread is this? b. What is the spread's possible payoff? c. How much initial capital is required for this spread?
Role of golgi apparatus and mitochondria in plant : Compare and contrast the role of the Golgi apparatus and mitochondria in plant and animal cells.
What is the cost to company a : Company A makes an offer to the shareholders of Company B to buy 2 million shares at $38 each. The current stand alone value of Company B is $68.75 million.
Identify and explain any variances you identify : Leadership style inventories that you have completed, and your interpretation of the results and nature of your interactions with others around you over time
Target of a leveraged buyout : Which type of company is most likely to be the target of a leveraged buyout?
Corporate practice of financing new investments : Actual corporate leverage ratios typically do not reflect capital structure targets, but rather the widely observed corporate practice of financing new investme
The personal values of target audience : The personal values of the target audience (or society, in the whole) are expressed or commented upon in the arts of that location and time.

Reviews

Write a Review

Finance Basics Questions & Answers

  Approving procurement of a surgical robotic unit

The chief executive officer (CEO) of the IDS is considering approving procurement of a surgical robotic unit for your center

  What is the projects npv

Oschner Hospital is evaluating purchasing new X-ray equipment. The equipment costs $725,000, has an expected life of 5 years and an estimated pretax salvage val

  Various states of the economy

Noah's Landing stock is expected to produce the following returns given the various states of the economy. What is the expected return on this stock?

  Calculate the operating expense

Calculate the Operating Expense shown on the Cash Flow from the following assumptions: Expense Amount = $0.45/sf/year; Property Size = 65,000 sf; Percent Fixed

  Describe evaluate the purchase option

Describe Evaluate the purchase option for a firm is considering a new milling machine from among three alternatives

  Determine the price of stock

Suppose you believe that the Non-stick Gum Factory will pay a dividend of $2 on its common stock next year. Thereafter, you expect dividends to grow at a rate of 6% a year in perpetuity.

  How should the firm determine its cost of equity

The firm maintains a debt-equity ratio of 0.40 and retains all profits to fund the firm's rapid growth. How should the firm determine its cost of equity?

  Documented private company

A paper on a publicly traded company (or well documented private company) that has experienced a major public crisis on social media.

  Settling labor disputes and product liability suits

Bankruptcy plays no role in settling labor disputes and product liability suits. Such issues are outside the bounds of bankruptcy law.

  Represent primarily variable costs

Question 1: For a given accounting period, which of the following is likely to represent primarily variable costs?

  Choice of exchange rate regimes for developing countries

Visit the website of the World Bank and review this paper on "Choice Of Exchange Rate Regimes For Developing Countries" (Yagci 2001). Examine the table of Exchange Rate Regimes and compare it to the one in your textbook. Please choose one Regime. ..

  Assess financial performance and condition of organization

Describe Porsche's history and its 4Ps (Product, Price, Place, and Promotion). Explain the current situation of the organization in the market (industry, market, and general environment analysis). Assess the financial performance and condition of the..

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