What is the minimum exchange ratio brm could accept

Assignment Help Finance Basics
Reference no: EM13268271

TNT Corporation is considering the acquisition of BRM Corporation. TNT has 220,000 shares of stock, with earnings per share of $2.50 and a market price per share of $30. BRM has 265,000 shares outstanding with earnings per share of $1.40 and a market price of $10. The merger is expected to increase net income of the combined companies by $275,000 (in synergistic benefits). What is the maximum exchange ratio TNT can offer and what is the minimum exchange ratio BRM could accept?

Reference no: EM13268271

Questions Cloud

Compute the maximum molar concentration of a solution : Calculate the maximum molar concentration of a solution that can be purified by reverse osmosis using this membrane at 25 degree C.
Count the number of nmos and pmos transistors : implement the function. Count the number of NMOS and PMOS transistors and the number of inverters. The available inputs are A, B, C, D and E (no inversions). X = AB + A(B + C) Y = A + B + C Z = A + BC
Flowchart, psuedocode and desk check : Flowchart, psuedocode and desk check
Find out the minimum molecular mass of the protein : a certain protein was found to contain 0.639% zinc by mass. Determine the minimum molecular mass of the protein.
What is the minimum exchange ratio brm could accept : The merger is expected to increase net income of the combined companies by $275,000 (in synergistic benefits). What is the maximum exchange ratio TNT can offer and what is the minimum exchange ratio BRM could accept?
Determine poles and zeros and gain for the analogue filter : In this section the linear phase constraint will be dropped, and a magnitude only design sought for the low-pass filter using the bilinear transform of Butterworth and Elliptic analog prototypes. The steps are (a). Decide on an analog prototy..
Explain the systematic names of the compounds : Give the systematic names of these compounds. Spelling counts! (a) CuI(s) (b) Fe2O3(s) (c) CoF2(s) (d) FeO(s)
Design an algorithm that will prompt for and receive 10 : A  flow chart for the following problem. Just a flowchart. Design an algorithm that will prompt for and receive 10 integers from an operator  at a termina
State formulas for the ionic compounds : Enter formulas for these ionic compounds. copper(I) bromide copper(II) bromide iron(III) bromide lead(IV) bromide copper(I) oxide copper(II) oxide iron(III) oxide lead(IV) oxide

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial analysis toolbox portfolio project

Financial Analysis Toolbox (Portfolio Project) - This toolbox consists of a listing and representative examples of techniques used in the course to make meaningful financial decisions.

  Compution of ranges where increase and decrease in return

Compution of ranges where increase and decrease in return occurs and describe and show the point where diminishing returns occurs

  What should the big mac sell for in iceland

According to purchasing power parity, if a Big Mac sells for $3.29 in the United States and the exchange rate for the Iceland kronur is 117.51 kronur/$, what should the Big Mac sell for in Iceland?

  What would be the additional funds needed

The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 65%. What would be the additional funds needed? Do not round intermediate calculations. Round your answer to the nearest dollar.

  Fisher effect-u.s and euro inflation and currency rates

Suppose that the U.S and Euro nominal interest rate are equal. Subsequently, the U.S. nominal rate decreases while Euro nominal interest rate remains stable.

  What is the firms cost of debt

If Imaginary is subject to a 40 percent marginal tax rate, then what is the firm's cost of Debt?

  Individual investor versus a mutual fund

Would these three elements have different priorities if referring to an individual investor versus a mutual fund?

  What rate of return must the firm earn

A company has outstanding $100 million worth of common stock on which investors require a return of 15%. In addition, the firm has outstanding $50 million in bonds that offer 9% return.

  Calculation of total revenues

The Gold Rush Mining Corporation is concerned about short-term volatility in its revenues. Gold currently sells for $300 an ounce, but value is volatile and could fall as low as $280 or rise as high as $320 in the next month.

  Compute the incremental net income

The Best Manufacturing Corporation is planning a new investment. Financial projections for the investment are tabulated below. Cash flows are in $ thousands, and the corporate tax rate is 34%.

  External funding requirements

Determine the external funding requirement if the company has a constant dividend policy with a 3% annual growth rate?

  Restating for foreign inflation

Aztec Corporation, a U.S. subsidiary in Mexico City begins and ends its calendar year with an inventory balance of P500 million. The dollar/peso exchange rate on January 1 was $.02=P1.

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