What is the merger premium per share

Assignment Help Financial Management

Reference no: EM13950066

The Cycle Stop has 1,600 shares outstanding at a market price per share of $8.48. Kate's Wheels has 1,750 shares outstanding at a market price of $13 a share. Neither firm has any debt. Kate's Wheels is acquiring The Cycle Stop for $15,000 in cash. What is the merger premium per share?

Reference no: EM13950066

Questions Cloud

What is the dollar-denominated return in percentage : Suppose a U.S. investor wishes to invest in a British firm currently selling for 50 pounds per share by buying 200 shares of the British firm. The current exchange rate is $1.40 per pound. After one year, the exchange rate is $1.60 per pound and the ..

A foreign exchange trader faces : A foreign exchange trader faces the following quotes: The trader has a credit line to borrow up to €30,000 (or its yen equivalent). If instead, this trader wants to implement an uncovered interest arbitrage (UIA) strategy, what steps would he or she ..

Problem associated with discounted payback : Which of the following is NOT a problem associated with discounted payback?

What does the ethical principle of sharing benefits mean : What does the ethical principle of “sharing benefits” mean? all participants in the same study should receive an equal share of the benefits or subject payments. all those who belong to the population being studied will share equally from the benefit..

What is the merger premium per share : The Cycle Stop has 1,600 shares outstanding at a market price per share of $8.48. Kate's Wheels has 1,750 shares outstanding at a market price of $13 a share. Neither firm has any debt. Kate's Wheels is acquiring The Cycle Stop for $15,000 in cash. W..

Credit union would make the two financing options equivalent : To purchase a house for $80,000, a new couple has $12,000 available for down payment. get a new standard mortgage with 10% APR interest compounded monthly for a 30-year term. What is the effective rate for option 2 per year? Compute the monthly payme..

Consider three-year bond with a par value : Consider a 3-year bond with a par value of $1,000 and an 8% annual coupon. If interest rates change from 8 to 6% the bond's price will:

When computing the firm weighted average cost of capital : Theresa’s Flower Garden has 750 bonds outstanding that are selling for $989 each, 2,500 shares of preferred stock with a market price of $47 a share, and 30,000 shares of common stock valued at $56 a share. What weight should be assigned to the commo..

What is the implied personal tax rate on debt income : Assume that the firm's gain from leverage according to the Miller model is $126,667. If the effective personal tax rate on stock income is TS = 20%, what is the implied personal tax rate on debt income? If the following is true: EBIT: $100,000 rd: 12..

User Account

All Pages