What would be the value of share holdings

Assignment Help Financial Accounting
Reference no: EM132701360

TGIT Pizza is planning on acquiring TGIT Sausage in a pure share exchange merger. TGIT Pizza's share is currently trading at $35, and it set the exchange ratio at 0.75. TGIT Sausage has 72 million shares outstanding, which are currently trading at $18 a share.

Problem a) If you owned 180 shares of TGIT Sausage, what would be the value of your share holdings after the merger?

Option 1: $4725

Option 2: $7000

Option 3: $3600

Option 4: $4500

Option 5: none of the above

Reference no: EM132701360

Questions Cloud

How might task interdependence have influenced : How might task interdependence have influenced that conflict?
Training budget : Why do you think that education money or training money is one of the first line items to be reduced or eliminated
Complete the depreciation expense and book value schedules : Complete the Depreciation Expense, Accumulated Depreciation, Book Value schedules for 2017 and 2018 for each of the Straight Line Depreciation
Calculate the total amount of oats allowed for actual output : During the year, 960,000 cartons of oatmeal were produced. Calculate the total amount of oats allowed for the actual output
What would be the value of share holdings : TGIT Pizza is planning on acquiring TGIT Sausage, If you owned 180 shares of TGIT Sausage, what would be the value of your share holdings after the merger?
Creating disaster plan : While we expect our new EHR system to function effectively and meet the needs we have specified for the practice, disasters and contingencies can happen
What is the total transaction value of the merger : What is the total transaction value of the merger? TGIT Pizza is planning on acquiring TGIT Sausage in a pure share exchange merger.
How many shares will tgit pizza issue in exchange for tgit : How many shares will TGIT Pizza issue in exchange for TGIT Sausage's shares?
What is the fair interest rate on moore corporation bond : You are considering an investment in 30-year bonds issued by Moore Corporation. What is the fair interest rate on Moore Corporation 30-year bonds?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is general ledger account corresponding to a subsidary

What is the general ledger account corresponding to a subsidiary ledger called? Which of the following is included within the audit planning?

  Actual change versus change excluding impairment losses

The Nomura Securities stock report claims that "Operating profits fell 3%, but rose 11% after adjusting for impairment losses." Why do you think Nomura highlighted the difference between actual change versus change excluding impairment losses

  Wage and state unemployment tax rate

Thomas is an employer with one employee, Sarah. Sarah's wages are $19,450, and the state unemployment tax rate is 5.4 percent. Calculate the following amounts for Thomas:

  Part of the divorce agreement

As part of the divorce agreement, Harold transfers his ownership interest in their persnonal residence to Lisa. The house has been jointly owned and the adjusted basis is $190,000. At the time of the transfer, the FMV of the house is $300,000. What i..

  Outstanding capital stock

The outstanding capital stock of Robbins Corporation consisted of 3,000 shares of 10 percent preferred stock, $250 par value, and 30,000 shares of no-par common stock with a stated value of $250. The preferred was issued at $412, the common at $480 p..

  Did seaver books act ethically in reinstating the debt

Academy of Basic Education, which was still operational. Did Seaver Books act ethically in reinstating the debt of one client, and not the other? Explain.

  Fringe benefits would be taxable to fiona

Fiona is a highly compensated employee of GreatWorks, Inc. Which of the following fringe benefits would be taxable to Fiona?

  When the transaction is recorded in a journal entry

Maurice Financial Services invested $15,000 to acquire 3,750 shares of Delta Investments on March 15, 2012. This investment represents less than 20% of the investee's voting stock. On May 7, 2016, Maurice Financial Services sells 1,750 shares for $12..

  Show all the entries that masako company will make

For the year 20X1, show all the entries that Masako Company will make related to the above transactions, assuming that is uses the market method.

  What is the amount of goods available for sale

At the beginning of the year, Kelly Sales had $2,400 of merchandise inventory. During the year, Kelly purchased $22,000 of inventory. At the end of the year, a count of the inventory revealed that Kelly had $1,600 of inventory on hand. What is the am..

  What is the journal entry to revalue the asset to fair value

What is the journal entry to revalue the asset to fair value in accordance with the requirements of AASB 116 Property, Plant and Equipment?

  Cash dividends and two classes of stock

Cash dividends and two classes of stock Raymond Inc., has two classes of capital stock outstanding: 25,000 shares of 5%, $100 par value cumulative preferred and 30,000 shares of $10 par value common. During the current year, the company earned net in..

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