ABC, Inc. and XYZ, Inc. have entered into a stock-swap merger agreement whereby ABC will pay a

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

Question:

ABC, Inc. and XYZ, Inc. have entered into a stock-swap merger agreement whereby ABC will pay a 40% premium over XYZ's pre-merger price. If XYZ's pre-merger price per share was $40 and ABC's was $50, what exchange ratio will ABC need to offer?

Related Book For answer-question

Smith and Roberson Business Law

ISBN: 978-0538473637

15th Edition

Authors: Richard A. Mann, Barry S. Roberts

See More Books

Posted Date: Dec 09, 2020 10:04 PM

See More Questions

You have entered into a contract with Azam to supply your business with photocopy paper. You have known Azam for a long time and find him to be a reliable supplier of office supplies, though you have...
You have entered into a forward contract with the following parameters: Bond: 10 year, zero coupon bond Issuance: Will be issued in 1 year Face Value: $1000 1 year spot rate: 3 pct. 10 year spot...
ABC Ltd entered into an agreement to borrow 500 000 from Fistral plc, a UK affiliate on 1 July 2019. Fistral plc transferred the loan money to ABC Ltds Australian bank account on the contract day....
In the proposal, the contractor estimated that 50 units of a specialty part are required. Each unit costs $300. There is a minimum buy requirement of 100 units. You contact the vendor and confirm the...
The following data are the ages (in years) of the U.S. Supreme Court Justices. a. Construct a stemplot of the ages. b. Describe the shape of the distribution. c. Use the 50th percentile to measure...
Sandy Bank, Inc. makes one model of wooden canoe. Partial information for it follows: Required: 1. Complete the preceding table. 2. Suppose Sandy Bank sells its canoes for $550 each. Calculate the...
Determine the slope at $A$. The A992 steel beam has a moment of inertia of $I=125\left(10^{6} ight) \mathrm{mm}^{4}$. 18 kNm A -4 m- D B3m 3m 4m m- 18 kNm
Morrissey Technologies Inc.s 2008 financial statements are shown here. Suppose that in 2009, sales increase by 10% over 2008 sales. The firm currently has 100,000 shares outstanding. It expects to...
Service revenue $970,400 Operating expenses, excluding depreciation $624,100 Depreciation expense 55,400 Loss on disposal of plant assets 25.200 704,700 Income before income taxes 265,700 Income tax...
Publishing Company, Inc. ("P") is a publicly traded C corporation engaged in the publication of professional textbooks. P has 5 million shares of voting common stock outstanding. The stock is...
Calculate the increase of the Debt investment account of the Orange Company at June, 30 for $70 000 of Juice Company 10% bond purchased at January, 1. Payments are annual on January, 1. The purchase...
AAA Agricultural Machinery decides to invest in new robots. The cost of a robot is $1000. Suppose the expected real interest rate is 3% and the capital depreciation rate is 6%. The firm pays taxes...
(a) Show that the function f defined as follows for x = (x1, x2) R2 is a convex function. f(x) = max{x1, x2} (b) If fi and f2 defined on the convex set S are convex functions, show that the following...
Find the present value of an income stream which has a negative flow of $100 per year for 3 years, a positive flow of $200 in the 4th year, and a positive flow of $300 per year in years 5 through 8....
What insights have emerged from recent studies elucidating the role of metabolite-sensing nuclear receptors, such as PPARs and FXRs, in mediating metabolic homeostasis and their potential as...
Monthly, Val's net earnings are $5,000, and expenses are $4,000. How much should Val have in savings for a 5-month emergency fund?
When does trademark infringement occur? . What trademarks are protected by law? How does the license protect intellectual property? What works are protected by copyright? What federal legislation...
What is your opinion of advertising awards, such as the Cannes Lions, that are based solely on creativity? If you were a marketer looking for an agency, would you take these creative awards into...
Civil Code 1719, subdivision (a) provides in part that any person who draws a check that is dishonored due to insufficient funds shall be liable to the payee for the amount owing upon the check and...
Trans-Aire International, Inc. (TAI) converts ordinary automotive vans into recreational vehicles. TAI had been installing carpet and ceiling fabrics in the converted vans with an adhesive made by...
Civil Code 1719, subdivision (a) provides in part that any person who draws a check that is dishonored due to insufficient funds shall be liable to the payee for the amount owing upon the check and...
What could go wrong with the logistical aspects of executing the strategy?
Describe how the models presented in this chapter can be beneficial to a decision maker involved with a business continuity program.
How is simulation modeling useful in supply chain risk analysis?

ABC, Inc. and XYZ, Inc. have entered into a stock-swap merger agreement whereby ABC will pay a

Question:

Expert Answer:

Exchange ratio share price of ... View the full answer

Smith and Roberson Business Law

Students also viewed these accounting questions