User Account

All Pages

What is the expected market price per share

Assignment Help Finance Basics
Reference no: EM132017034

Fertfood has a current market value of $30 million and earns $2,700,000 annually, while Tools-4U has a market value of $5 million and annual earnings of $1 million per year. If the companies merge an additional cash flow of $136513 would result next year. The merged firm will have 5 million shares. The merged firm's earnings in the first year will comprise the pre-merged earnings of each firm plus the additional cashflow mentioned above.

If the post-merged firm's P/E ratio is expected to be 17 what is the expected market price per share using the P/E method?

Reference no: EM132017034

Questions Cloud

What is the maximum depreciation the business : What is the maximum depreciation the business will be able to claim in its tax return this year?
Discuss the pros and cons of each source of financing : One issue you are discussing is how to finance the projected increases in operating assets. Discuss the pros and cons of each source of financing
Bank account-interest rate : How much is left in the bank account in 6 years if the interest rate is 5% pa. compounding semi-annually? (Correct to the nearest cent.)
Identify any principles of internal control : Required: Identify (& briefly explain) any principles of internal control that may be violated in the above situation
What is the expected market price per share : ?If the post-merged firm's P/E ratio is expected to be 17 what is the expected market price per share using the P/E method?
Determining the npv of reggie redbird : Reggie Redbird, the CEO of University Park Minivans, Inc. believes that the firm could create additional value by adding golf carts to its product mix.
Company annual percentge cost of common equity : According to the security market line (SML) technique, what is the company's annual percentge cost of common equity (ke) financing?
Draw the structure of glucose with the carbons : Draw the structure of glucose with the carbons numbered 1 through 6 (anomeric carbon should be #1). Number these carbons again as they appear
Advise wanda regarding the tax consequences of her plan : Wanda is considering selling two personal use assets that she owns. Advise Wanda regarding the tax consequences of her plan

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