User Account

All Pages

What is the ratio of exchange

Assignment Help Finance Basics
Reference no: EM131110333

Willow Enterprises is considering the acquisition of Steadfast Corp. in a stock swap transaction. Currently, Willow's stock is selling for $45 per share. Although Steadfast's shares are currently trading at $30 per share, the firm's asking price is $60 per share.

a. If Willow accepts Steadfast's terms, what is the ratio of exchange?

b. If Steadfast has 15,000 shares outstanding, how many new shares must Willow issue to consummate the transaction?

c. If Willow has 110,000 shares outstanding before the acquisition, and earnings for the merged company are estimated to be $450,000, what is the EPS for the merged company?

Reference no: EM131110333

Questions Cloud

Calculate the ratio of exchange and the ratio of exchange : The transaction would require Phylum to swap its shares for those of Taxonomy, which would be paid $60 per share. Calculate the ratio of exchange and the ratio of exchange in market price for this transaction.
Show how this can be implemented : An intuition of how to escape such a trap is that, when the robot hits a wall, it follows the wall until the number of right turns equals the number of left turns. Show how this can be implemented, explaining the belief state, the belief-state tra..
Fresh water supply system : A developer of a housing complex on an off-shore island is considering building a pipeline connecting to the fresh water supply system of the government in replacing the existing desalination plant. Assuming the daily use of water is 240 m3 calculate..
Young programmers than old programmers : When Richard Stallman founded the Free Software Foundation in 1985, he was able to tap into the energy of many programmers around the world who wanted to work on a free operating system.
What is the ratio of exchange : Although Steadfast's shares are currently trading at $30 per share, the firm's asking price is $60 per share. If Willow accepts Steadfast's terms, what is the ratio of exchange? If Steadfast has 15,000 shares outstanding, how many new shares must Wil..
Compute the amount of the lease receivable : Prepare the journal entries to reflect the signing of the lease agreement and to record the receipts and income related to this lease for the years 2010, 2011, and 2012.
Calculate the weighted average cost of capital : Based on the information below, calculate the weighted average cost of capital. Great Corporation has the following capital situation.
What will happen to american wages employment and prices : What will happen to American wages, employment, and prices? Should more strict policies on immigration and free trade be enforced? Are there parallels between the Trump attitude toward trade and immigration and the British decision to LEAVE the EU..
With limited memory and storage facilities : In the 1970s, computers (even minicomputers) were very expensive. Since no one had their own computer, people had to share. Compared to today, computers in the 1970s were slow, with limited memory and storage facilities.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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