Pinder just announced that it will acquire Value for $12 per share. Values shares traded at $8

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

Question:

Pinder just announced that it will acquire Value for $12 per share. Value’s shares traded at $8 prior to the announcement and $11 after the announcement. Pinder’s shares traded at $53 prior to the announcement and $52 after the announcement. Assume that you are a merger arbitrageur and want to investment in this opportunity with $5000. You cannot invest in fractional shares.

What are your profits from the acquisition if it is successful? (If necessary, round only the final answer to the nearest two decimal places)

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: Dec 01, 2023 02:46 AM

See More Questions

1. Based on the information provided in the case below, what is the key strategic goal for Tim Hortons as of August 2014? It would be a year of dramatic change for Tim Hortons Inc. On August 26,...
During the current year, music company's piano division reports sales of 750,000 and operating assets of 375,000. what is the sales margin that the piano division must earn in order to achieve a...
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...
From the information below, 1. List of the working capital accounts. 2. Calculate the net working capital. Buildings $100,000 Cash ... 5,000 Trade receivables ... 25,000 Trade and other payables .....
What property of a cathode ray is indicated when a magnet is brought near the tube?
Show the effects of the following transactions on the financial statements in the horizontal statements model. (a) Recognize the NSF check, (c) Customer redeems the check by giving Montgomery $390...
Gear Heads, Inc., restores antique automobiles. The retained earnings balance of the corporation was $$32,000$ at December 31,2009. During 2010, the corporation paid $$40,000$ in dividends to its...
Lucile Bluth has been asked by the Board of Directors to provide a brief presentation at the upcoming meeting to identify the root cause of project G.O.B's challenges as well as identify a feasible...
What is the scope of and the role of consultants in financial management consulting? For the next questions, assume that your financial analytics and management consulting firm, FAMCF Inc. ("FAMCF")...
What Are Empirical/Research Articles? Describe the resource assigned to you including two examples of how this resource will support your successful completion of the capstone project?
The following information relates to contract NO. X300. Prepare the Contract Account. Direct materials 45,600 Direct wages 24,400 Special plant 18,400 Store issued 6,040 Loose tools 3,560 Expenses of...
What is the New York Stock Exchange (NYSE)?
What is a firms enterprise value, and what does it measure?
What is the diluted earnings per share?
What is the balance sheet identity?
In what two cases is the internal rate of return easy to calculate?
that Given that two random vectors x and z are jointly Gaussian, show 2Pyy-1/2-(y-y) Py(y-y) 2P21/2e-(2-2) P (z-z) where y = [x ZTT p(x|z) = p(x,z) p(z) is Gaussian with mean and covariance given by...
Assume that a trial balance is prepared with an account balance of $21,360 listed as $21,630 and an account balance of $1,500 listed as $15,000. Identify the transposition and the slide.
Why might a firm keep a safety stock? What effect is it likely to have on carrying cost of inventory?
You can buy a warrant for $4.00 that gives you the option to buy one share of common stock at $14.50 per share. The stock is currently selling at $12.00 per share. a. What is the intrinsic (minimum)...
What are the differences between a parallel loan and a fronting loan?
Design a voltage reference source as shown in Figure 9.42 to have an output voltage of $12.0 \mathrm{~V}$. A Zener diode with a breakdown voltage of $5.6 \mathrm{~V}$ is available. Assume the...
Design an op-amp summer to produce an output voltage of $v_{O}=3 v_{I 1}+$ $1.5 v_{I 2}+2 v_{I 3}-4 v_{I 4}-6 v_{I 5}$. The largest resistor value is to be $250 \mathrm{k} \Omega$.
Consider the bridge circuit in Figure P9.87. The resistor $R_{T}$ is a thermistor with values of $20 \mathrm{k} \Omega$ at $T=300 \mathrm{~K}$ and $21 \mathrm{k} \Omega$ at \(T=350...

Pinder just announced that it will acquire Value for $12 per share. Values shares traded at $8

Question:

Expert Answer:

Pinder just announced that it will acquire Value for 12 per share Values shares traded at 8 prior to ... View the full answer

Foundations of Financial Management

Students also viewed these finance questions