Amazon wants to buy out a small company and offers them $5,000,000. The small company's stock value

Fantastic news! We've Found the answer you've been seeking!

Question:

Amazon wants to buy out a small company and offers them $5,000,000. The small company's stock value is $15.75 and they have 400,000 total shares outstanding. Is this a good offer?

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

See More Books

Posted Date: Jun 21, 2023 05:41 AM

See More Questions

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
Read the case study and answer the question below with a one page response. What does a SWOT analysis reveal about the overall attractiveness of Under Armours situation? Founded in 1996 by former...
Define C2C e-commerce. What role can private forwarding addresses play in the C2C e-commerce marketplace?
At a hydroelectric power plant, water is directed at high speed against turbine blades on an axle that turns an electric generator. For maximum power generation, should the turbine blades be designed...
Determine by direct integration the moment of inertia of the shaded area with respect to the x axis. (o2-DY=6
On July 1, Chi Kong creates a petty cash fund with a balance of $300. During July, Elise Sautter, the fund custodian, signs the following petty cash tickets: Petty Cash Ticket Number 101 102 103...
The Daniels Tool & Die Corporation has been in existence for a little over three years. The company's sales have been increasing each year as it builds a reputation. The company manufactures dies to...
Discuss with your team members to identify issues or problem related to information technology in insurance industry?
Julio buys a koi fishpond (and fish to put in it) for his wife on their anniversary. He pays $8000 for the pond and fish with $2000 down. The dealer charges add-on interest of 3.5% per year, and...
In research analysis determine the cost of exporting of dried mango in Germany and elaborate a pricing strategy and assess the viability of the transaction.
What advanced persuasion techniques can be used in business writing to influence decisions or actions? How do you apply these techniques while maintaining ethical standards ?
How do you conduct a comprehensive audience analysis to ensure your business communication resonates with a diverse set of stakeholders? What factors do you consider in tailoring your message to...
Silver nitrate has a molar mass of 169.87 g/mol. To make 250 mLof 1% weight/volume AgNO3 in ethanol, what mass of AgNO3 isrequired?
The substitution reaction of molybdenum hexacarbonyl, Mo(CO)6 ,with a variety of other molecules L are believed to occur by thefollowing mechananism. Mo(CO)6----> Mo(CO)5+CO Mo(CO)5-----> Mo(CO)5 L...
Computer - assisted audit techniques ( CAATs ) are the use of computers for audit work and comprise mainly audit software and test data. Required: List the benefits of employing CAATs in an audit...
Gulf Sorghum Limited cultivates some 10,000 hectares of sorghum crop in the region of the Gulf of Carpentaria in Queensland. It has entered into a long-term supply contract with Australian Biofuels...
(a) Given a mean free path = 0.4 nm and a mean speed vav = 1.17 105 m/s for the current flow in copper at a temperature of 300 K, calculate the classical value for the resistivity of copper. (b)...
Why might disinflation prove to be favorable to financial assets?
Dr. Gupta Diagnostics' income statement for 2015 is as follows: Sales ................. . . .................................$2,000,000 Cost of goods sold ........... . . . ............... ....
Explain why the statement of cash flows provides useful information that goes beyond income statement and balance sheet data.
Which one of the following can completely balance several masses revolving in different planes on a shaft? (a) A single mass in one of the planes of the revolving mass (b) A single mass in any one...
The curve traced by a point on the circumference of a circle which rolls along the inside of a fixed circle, is known as (a) epicycloid (b) hypocycloid (c) cardiod (d) involute.
Match List I with List II and select the correct answer using the codes given below the lists: List I (Forces) A. Inertia force B. Spring force C. Damping force D. Centrifugal force List II...

Amazon wants to buy out a small company and offers them $5,000,000. The small company's stock value

Question:

Expert Answer:

To determine whether the offer from Amazon to buy out the small company is good we need to compare t... View the full answer

Foundations of Financial Management

Students also viewed these finance questions