What is the maximum exchange ratio

Assignment Help Finance Basics
Reference no: EM13267532

A Corporation is considering the acquisition of X Corporation. Each corporation has the following data: Existing Income Number of Shares A Corporation $4,200,000 621,000 X Corporation $2,200,000 365,000 Synergistic additional benefits from the combination are $1,200,000. What is the minimum exchange ratio is necessary to keep the X shareholders whole in terms of earnings per share? What is the maximum exchange ratio would the A Corporation shareholder accept in taking over X Corporation and remain whole in terms of earnings per share? (note you will need to use the formulas in the book to solve this)

Reference no: EM13267532

Questions Cloud

How many photons are being released per second : Hydrogenic atoms in an ultraviolet light fall from energy quantum state n = 9 to state n = 2 while releasing ultraviolet photons. How many photons are being released per second
What is the minimum distance from the mountain to receiver : Waves from a radio station have a wavelength of 308 m. They travel by two paths to a home receiver 77.0 km from the transmitter. What is the minimum distance from the mountain to the receiver
Explain how many chemicaly different hydrogens : How many chemicaly different hydrogens are in: 4'-Aminoacetophenone; 3'-aminoacetophenone; benzoic acid; 3-toluic acid;1,4-dimethoxybenzene; and fluorenone? alson how would you do a predicted chemical shift and splitting pattern for those
Find the electric field vector at points along the z-axis : An infinite sheet of uniform (constant) charge density (rho)s0 [C/m^2] is situated coincident with the x-y plane at z = 0. The sheet has a hole of radius a centered at the origin. Find the electric field vector at points along the z-axis.
What is the maximum exchange ratio : What is the maximum exchange ratio would the A Corporation shareholder accept in taking over X Corporation and remain whole in terms of earnings per share? (note you will need to use the formulas in the book to solve this)
What is the effective spring constant of the two springs : A block with mass m = 4.6 kg is attached to two springs with spring constants kleft = 37 N/m and kright = 51 N/m. What is the effective spring constant of the two springs
Find the electric field vector e at the origin for the case : A line charge of density (rho)l [C/m] is in the form of a semicircle of radius a lying on the x-y plane with its center located at the origin. The semicircle starts at (phi)= pie / 2 and ends at phi = 3(pie) / 2 in cylindrical coordinates.
Determine the firm weighted average cost of capital : Weekend Warriors, Inc. has 35% debt and 65% equity in its capital structure. The firm's estimated after tax cost of debt is 8% and its estimated cost of equity is 13%. Determine the firm's weighted average cost of capital.
Find velocity of electrons that are moving only by diffusion : A general relationship for the current density carried by electrons of density n is J = qnv, where q is the electronic charge and v is the electron velocity due to drift and/or diffusion. (a) Find the velocity of electrons, v(x), that are moving on..

Reviews

Write a Review

Finance Basics Questions & Answers

  Treasury responsibilities

What is meant by this term and how should the CFO be involved in this area? Also, how does "risk management" relate to treasury responsibilities?

  Calculate the bid price

If a project is to supply hundred million postage stamps per year to the USPS for the next five years. You have land available that cost $2,400,000 five years ago.

  What you can infer from the company success

One year ahead of the planned IPO the company is already raising capital through private placement markets. What you can infer from the company success in the private market about the success of the IPO?

  Determine the monthly payments

If Hudson Corporation borrows $500,000 on a 10% add-on basis, payable in twelve equal end-of-month installments, how large would the monthly payments be?

  Find standard deviation of a portfolio

Suppose you put half of your fund in a stock that has an expected return of 14% and a standard deviation of 24 percent. You put the rest of your money in another stock that has an expected return of 6% and a standard deviation of 12 percent.

  Who is right and why

AAAU tells Ford that they must fire the "scabs" who were hired during the strike so their union members can have their jobs back. Ford says that they aren't going to fire anyone and they don't have to. Who is right and why?

  Forward exchange rate-nominal interest rates on bonds

Six-Month T-Bills have a nominal rate of 7 %, while default-free Japanese bonds that mature in 6 months have a nominal rate of 5.5%.

  What is the bond price is priced with the assumption

what is the bond price is priced with the assumption that the call will be on the first available call date?

  Computation of beta and asset beta

Computation of beta and asset beta and compute the beta of Compton Technology's debt by dividing the covariance of the debt's return

  Calculate operating cash flow

A project has a contribution margin of 5$, projected fixed costs of $13,000, projected variable cost each unit of $12, & a projected present value break-even point of 5,500 units.

  Estimate the weighted cost of capital

Electronics Unlimited has the following capital structure: 60 percent stock, 10 % preferred stock, and 30% in debt. The after-tax cost of debt is 8 percent, the cost of preferred stock is 10 percent, and the cost of common stock is 12 percent.

  Background information on the firm

The Shocking Demise of Mr. Thorndike, Prepare a PowerPoint presentation to be presented in class (blackboard) and an Excel worksheet backup that address the case study question(s) and provides:

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