What is the resulting stock price of jkl

Reference no: EM13259269

JKL Company wants to acquire MNO Company.
• JKL has a market value of $500 million with 30 million shares of common stock in the hands of investors.
• MNO has a market value of $180 million with 20 million shares of common stock in the hands of investors.
• The combined firm would have a value of $720 million.
• MNO can be purchased by JKL for a premium over market value of $25 million.

a) If JKL offers 12 million shares of its stock for the 20 million of MNO's stock that is outstanding, what is the resulting stock price of JKL after completing the acquisition?

b) If the value of the acquisition were the equivalent of $205 million in cash, what exchange ratio between the two stocks would make that happen?

Reference no: EM13259269

Questions Cloud

Compute the standard free energy change at 25c : For the reaction 3 C2H2(g) C6H6(l) at 25C, the standard enthalpy change is -631 kJ and the standard entropy change is -430 J/K. Calculate the standard free energy change at 25C.

Journal entry required to record the payment : A business purchases $ 40,000 merchandise on credit terms 2/10, n 30 on June 6, 2009. If it pays for the merchandise on June 15, 2009 what is the journal entry required to record the payment.

Calculate the core flux density of an ideal transformer : Considering an ideal transformer with impedance on the secondary, neglecting the winding resistances, leakage inductances and the core loss. N1/N2=3 For a voltage of 120V (rms) at a frequency of 60 Hz applied to winding 1

What is the intensity of the emering light : If unpolarized light of intensity l0 passes through an ideal polarizer, what is the intensity of the emering light

What is the resulting stock price of jkl : If JKL offers 12 million shares of its stock for the 20 million of MNO's stock that is outstanding, what is the resulting stock price of JKL after completing the acquisition?

Ending balance in stockholders : The income statement for August indicates net income of $50,000. The corporation also paid $10,000 in dividends during the same period. If there was no beginning balance in stockholders? equity, what is the ending balance in stockholders?

Determine an expression for the torque produced by couple : A pair of forces with equal magnitudes, opposite directions, and different lines of action is called a "couple." When a couple acts on a rigid object, the couple produces a torque that does not depend on the location of the axis.

What is the numerical value : Both the numerical value and dimensions of the universal gas constant R in the ideal gas formula pV=nRT depend on whether the temperature T is in Kelvin or Rankine Absolute temperature units.

Accounting system before financial statements : Each involves an adjustment that must be made to the accounting system before financial statements can be prepared. Show the effects of each adjusting entry on the accounting system.

User Account

All Pages