Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Your company has earnings per share of $3. It has 1 million shares? outstanding, each of which has a price of $45. You are thinking of buying? TargetCo, which has earnings of $2 per? share, 1 million shares? outstanding, and a price per share of $24. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. Suppose you offered an exchange ratio such? that, at current? pre-announcement share prices for both? firms, the offer represents a 21% premium to buy TargetCo. ? However, the actual premium that your company will pay for TargetCo when it completes the transaction will not be 21%?, because on the announcement the target price will go up and your price will go down to reflect the fact that you are willing to pay a premium for TargetCo without any synergies. Assume that the takeover will occur with certainty and all market participants know this on the announcement of the takeover? (ignore time value of? money).
a. What is the price per share of the combined corporation immediately after the merger is? completed?
b. What is the price of your company immediately after the? announcement?
c. What is the price of TargetCo immediately after the? announcement?
d. What is the actual premium your company will? pay?
Bank A has offered a loan with a 6% base rate and 20 BP fees. What is the anticipated return on this loan? Round your answer to four decimal places
What is meant by a protective put? What position in call options is equivalent to a protective put?
Assume a perfect financial world, where all securities are fairly priced according to the CAPM and Modigliani and Miller's ssumptions hold. Bingo Corp.
Explain why a stimulative monetary policy might not be effective during a weak economy in which there is a credit crunch.
Olsen Outfitters Inc. believes that its optimal capital structure consists of 60% common equity and 40% debt, and its tax rate is 40%.
If the tax rate is 35% and there is no cost of financial distress, what is the weighted average cost of capital of Khalid'sConcrete Inc.?
suppose your bank account will be worth 4200.00 in one year. the interest rate discount rate that the bank pays is 5.
What is the firm's after-tax cost of debt if its average tax rate is 25 percent and its marginal tax rate is 34 percent?
Place your answer in dollars and cents without the use of a dollar sign or comma. If applicable, a negative answer should have a "minus"
Why are financial statements important to a business and how do they help businesses determine current financial health.
On July 1, a company paid the $6,000 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the current year ended December 31?
Rich lives two periods. His earnings in the present are 100; in the future they are 75.6. The interest rate is 8 percent.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd