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!
Chicago Savings Corp. is planning to make an offer for Ernie's Bank & Trust. The stock of Ernie's Bank & Trust is currently selling for $52 a share.
Problem a. If the tender offer is planned at a premium of 50 percent over market price, what will be the value offered per share for Ernie's Bank Trust? (Do not round intermediate calculations and round your answer to the nearest whole dollar.)
Problem b. Suppose before the offer is actually announced, the stock price of Ernie's Bank & Trust goes to $70 because of strong merger rumors. If you buy the stock at that price and the merger goes through (at the price computed in part a), what will be your percentage gain? (Do not round intermediate calculations. Input the amount as a positive percent value rounded to 2 decimal places.)
Problem c. Because there is always the possibility that the merger could be called off after it is announced, you also want to consider your percentage loss if that happens. Assume you buy the stock at $70 and it falls back to its original value after the merger cancellation. What will be your percentage loss? (Do not round intermediate calculations. Input answer as a positive value. Input your answer as a percent rounded to 2 decimal places.)
Problem d. There is an 80 percent probability that the merger will go through when you buy the stock at $70, and only a 20 percent chance that it will be called off. Compute the expected value of the return on the investment. Assume the time period involved is short. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Explain the rationale for recognizing costs as expenses at the time of product sale and what is the rationale underlying the appropriateness of treating costs as expenses of a period instead of assigning the costs to an asset? Explain.
The interest rate is 7%, and the building will be sold at the end of 22 years with a value of $65,000, what is the present value of the condo's cash flow
Amira purchased a Subaru Outback costing $34,750 before sales tax of 15%, with a $5,000 down payment, Calculate Amira monthly car loan payment
Given your expected business growth, what changes will you make to your present accounting system, based on your learning from the current lesson?
What amounts should Strauch report as basic earnings per share in its 2011 and 2010 comparative income statements?
The bond earned interest of $600 and was sold resulting a taxable capital gain of $300 during the year 2020. Which one of the following statements is true
Errors were made in each year as follows: in 2020, ending inventory was overstated by $11,000 while in 2021, ending inventory was understated by $6,900
Journalize the transaction to be expected on the next salary payment date (January25, 2020). Assume that the same amount of salary will be paid.
The firm has a capital intensity ratio of 2. What is the debt-equity ratio that is required to achieve the firm's desired rate of growth?
The following information is taken from the balance sheet of Raineer Plumbing: cash and cash equivalents, $50,000; accounts receivable, $130,000; inventories, ?; total current assets, $285,000; property, plant, and equipment (net), ?; total assets, $..
Kellogg Co. (K) recently earned a profit of $2.92 earnings per share and has a P/E ratio of 19.70. The dividend has been growing at a 7 percent rate over the past few years. If this growth rate continues, what would be the stock price in six years if..
Evaluate Solamente's accounting for the out-of-pocket costs of the business combination with Mika in light of IFRS and GAAP guidelines
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