What is the per-share value of visscher to hastings corp

Assignment Help Accounting Basics

Reference no: EM132682863

MERGER VALUATION

Question 1: Hastings estimates that if it acquires Visscher, the year-end dividend will remain at $1.99 a share, but synergies will enable the dividend to grow at a constant rate of 7% a year (instead of the current 5%). Hastings also plans to increase the debt ratio of what would be its Visscher subsidiary; the effect of this would be to raise Visscher's beta to 1.05. What is the per-share value of Visscher to Hastings Corporation?

Reference no: EM132682863

Questions Cloud

Relationship between theory development-management practice : What is the relationship between theory development and management practice? (Define each, then answer through your definition)

Make appropriate journal entries to record transaction : During its first year of operations, the McCollum Corporation entered. Prepare the appropriate journal entries to record each transaction

Improve communication with individuals from that culture : Identify a culture that varies from your own, and describe two strategies you can use to improve your communication with individuals from that culture.

Elements of goal setting theory : And explain how you could improve Helen's motivation by addressing each of the elements of goal setting theory. Make any assumptions you require.

What is the per-share value of visscher to hastings corp : What would be its Visscher subsidiary; the effect of this would be to raise Visscher's beta to 1.05. What is per-share value of Visscher to Hastings Corporation

What is the current price of visscher stock : Visscher's dividend is expected to grow at a constant rate of 5% a year, and its beta is 0.8. What is the current price of Visscher's stock?

Develop a self-improvement and development plan : Where you want to see yourself in 15 years, doing what and living what sort of life?

Evaluate operations they are providing as facilities : Evaluate their operations they are providing as facilities to customers. What are their services, branches and corporate structure?

How do project managers develop competence : 1. How do project managers develop competence? 2. How can project managers manage change?

User Account

All Pages