What is the value of david after the acquisition

Assignment Help Finance Basics
Reference no: EM133116431

Alexandra's is being acquired by David's for $75,000 cash. The acquisition is being financed internally from retained earnings. Alexandra's currently has 3,000 shares of stock outstanding at a price of $24 a share. David's has 10,000 shares outstanding with a market value of $48 a share. The acquisition will create $4,000 of synergy. What is the value of David's after the acquisition?

Reference no: EM133116431

Questions Cloud

What is the effective return friendly earns : What's the effective return Friendly's earns on this lending business? If you were brave enough to ask, what APR would Friendly's say you were paying
What is jason share of the net income : Each partner had a beginning capital balance of $302000. Any remaining net income or net loss is shared equally. What is Jason's share of the $448000 net income
Weighted average cost of capital : ABC company has the following capital structure as on 30 June 2020
Determine the break point for equity : ABC Corporation has a long-term debt weight of 35% and the equity weight of 65% in the capital structure. The business has sh.400,000 of retained earnings left
What is the value of david after the acquisition : Alexandra's is being acquired by David's for $75,000 cash. The acquisition is being financed internally from retained earnings. Alexandra's currently has 3,000
What impact did brexit have the on the euro : What impact did Brexit have the on the Euro? What about the impact on the Eurozone economy? If so what will be the future of the bloc
Find the amount of principal re-paid : You take out a 30-year, 200,000 mortgage loan with a nominal interest rate of 9%. You are scheduled to pay off the mortgage with level annual end-of-month amort
How can the quality of the data be maintained : Could the combination of data collection techniques yield more sources of information? How could data quality be improved? Justify your rationale
What is the annual cash return : Problem Solving Instruction. Compute what is being ask for. Show your solution. 5 points in every correct answer. Items 1 to 3. Mr. Tito Puno is thinking of buy

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd