User Account

All Pages

What is the maximum price Pinder Ltd can offer

Assignment Help Accounting Basics
Reference no: EM133056843

Question - Pinder Ltd has announced a cash offer to acquire Value Co. Pinder Ltd's shares are trading at $17 and there are 2 million shares of outstanding. Value Co's shares are trading at $3 and there are 1 million shares outstanding. Pinder Ltd estimates that the acquisition will incur integration costs of $210,000 per year for the first three years. Pinder Ltd expects to be able to reduce overlapping capital expenditures by $650,000 during the first five years of the acquisition. The required rate of return for Pinder Ltd is 10%. Assume cash flows occur at the end of each year. Based only on the information above, what is the maximum price Pinder Ltd can offer before destroying shareholder value?

Reference no: EM133056843

Questions Cloud

What is the net income for the year ending december? : Company had the following data for the year ending December? 31, 2014: Cash ?$6,000. What is the net income for the year ending December? 31, 2014
Calculate the adjusted price of the call option : The risk free rate is 5% pa. You many find this table showing the values of the standard normal cumulative distribution function useful.
People data central portal adopted by anthem : Describe the new People Data Central (PDC) portal adopted by Anthem. What does it do, and how does it improve data analytics capabilities at Anthem?
How does a central bank stimulate the economy : a. What are the primary functions that the Reserve Bank of Australia performs in the Australian financial system?
What is the maximum price Pinder Ltd can offer : Assume cash flows occur at the end of each year. Based only on the information above, what is the maximum price Pinder Ltd can offer
Floating-rate bond : 1. Which one of the following risks would a floating-rate bond tend to have less of as compared to a fixed-rate coupon bond?
What does the sales volume need to drop to before NPV : Assume cash flows occur at the end of each year, except for initial cash flows. Based only on the information above, what does the sales volume need to drop
What is the bond nominal yield to call : The bond has a6.50% nominal yield to maturity, but it can be called in 6 years at a price of $1,045. What is the bond's nominal yield to call
Major charitable organization in north carolina : - Nicole is the director of a major charitable organization in North Carolina.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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