Bulldog Acquirers has offered to buy the Gatorade Company for $20.80 per share, and will pay...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Bulldog Acquirers has offered to buy the Gatorade Company for $20.80 per share, and will pay cash. Bulldog's stock traded for $32 per share before the announcement of the merger agreement was made public, and today trades for $18.90 per share. Gatorade's stock traded for $16.90 per share before the announcement of the merger agreement was made public, and currently trades for $18.60 per share. The companies announced that they believe the merger will be completed exactly six months from today. Bulldog pays a dividend of 50 cents per share every quarter, and expects to continue paying that dividend. The merger premium Gatorade shareholders are getting for their stock is %. (Enter 12.3% as 12.3) Answer: Bulldog Acquirers has offered to buy the Gatorade Company for $20.80 per share, and will pay cash. Bulldog's stock traded for $32 per share before the announcement of the merger agreement was made public, and today trades for $18.90 per share. Gatorade's stock traded for $16.90 per share before the announcement of the merger agreement was made public, and currently trades for $18.60 per share. The companies announced that they believe the merger will be completed exactly six months from today. Bulldog pays a dividend of 50 cents per share every quarter, and expects to continue paying that dividend. The merger premium Gatorade shareholders are getting for their stock is %. (Enter 12.3% as 12.3) Answer:
Expert Answer:
Answer rating: 100% (QA)
To calculate the merger premium Gatorade shareholders are getting for ... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
Students also viewed these finance questions
-
Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment 1 2 3 4 5 6 7 8 9 Cash Inflow $ 42,000 $ 3,000 $ 5,000 $ 6,000 $ 12,000 $...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
For each of the following, determine (i) the market in question; (ii) whether a shi in demand or supply occurred, the direction of the shi, and what induced the shi; and (iii) the effect of the shi...
-
Compare and contrast indirect expenses and direct expenses.
-
Substitute the following forms for A(T) into the expressions found in Exercise 12 and compare with the results in the text. With A(T) = T / k + T (a case not considered in the text).
-
Make decisions in the situations described in the Ethical Behavior Worksheet. You will not have all the background information on each situation; instead, you should make whatever assumptions you...
-
As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Soria Company for the month of October. As a result of this budget...
-
Oil having a density of 921 kg/m floats on water. A rectangular block of wood 4.41 cm high and with a density of 963 kg/m floats partly in the oil and partly in the water. The oil completely covers...
-
1. What is the current flowing In the 6 ohms resistor? USE SUPERPOSITION 2 A 18 V ww ww 3 A 10 V 2. Obtain the Norton equivalent at terminal a-b of the circult. 8 kN ww 2V 0.01Vah 801 50 k2 Vab 3....
-
Background: What is perceived to be ethical by some people may be easily considered unethical by others. There is not always a right/wrong, yes/no, black/white answer when making decisions. Within...
-
write some program code to manage color images. Color images in one computer is usually stored with three values for each pixel showing how much red, green respectively the blue color contains. If...
-
Three resistors are connected in series in a circuit that is powered by a battery, and the individual resistance values are 250 Ohms, 150 Ohms and 50 Ohms. The current flowing in the circuit is 0.05...
-
Research a company that experienced a drop in quality standards in which customer expectations were not being met. Explain why quality standards went down and identify which of the "powerful quality...
-
3. The table below gives the probability of different returns for three different assets. Using this table, calculate the following: a. The expected return of each asset b. The standard deviation of...
-
Investments in African startups are on the up year-on-year, with funding flooding into a variety of countries and a large selection of sectors. The annual Disrupt Africa African Tech Startups Funding...
-
Design a circuit which negative the content of any register and store it in the same register.
-
Explain why accrual-basis accounting is more appropriate than cash-basis accounting for most businesses.
-
The trial balance of Sparkling Jewelry Company at the end of its 2012 fiscal year included the following account balances: Account Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . ....
-
An analysis of a companys financial ratios reveals the underlying reasons for the companys problems. Do you agree or disagree? Explain.
-
Oxford Corporation began operations in 2015 and reported pretax financial income of 225,000 for the year. Oxfords tax depreciation exceeded its book depreciation by 40,000. Oxfords tax rate for 2015...
-
At December 31, 2015, Suffolk Corporation had an estimated warranty liability of 105,000 for accounting purposes and 0 for tax purposes. (The warranty costs are not deductible until paid.) The...
-
State whether each of the following events will result in a movement along General Motors (GMs) demand curve for labor in their U.S. automobile factories or whether it will cause its demand curve for...
Study smarter with the SolutionInn App