Data Bee-Bee Honey PE Ratio 4 12 Share in Issue 120 000 240 000 Earnings (after tax)

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

Question:

Data Bee-Bee Honey PE Ratio 4 12 Share in Issue 120 000 240 000 Earnings (after tax) R 360 000 R 720 000 Bee-Bee shareholders will receive one share in Honey for every share they hold.

2.1.1 What will the EPS of Honey be after the merger? (4)

2.1.2 Calculate Honey’s share price and PE ratio if the NPV of the acquisition is zero. (6)

2.1.3 What is the value of Bee-Bee to Honey?

Related Book For answer-question

Fundamentals of Corporate Finance

ISBN: 978-0071051606

8th Canadian Edition

Authors: Stephen A. Ross, Randolph W. Westerfield

See More Books

Posted Date: Sep 28, 2022 03:57 AM

See More Questions

What aspects of merger and acquisition transactions involving stock are highly complicated? How are merger and acquisition transactions audited?
What types of companies have: a.a high PE ratio and a low market-to-book ratio? b.a high PE ratio and a high market-to-book ratio? c.a low PE ratio and a high market-to-book ratio? d.a low PE ratio...
If a stocks earnings per share is $2.00 what will be the dividend per share if the payout ratio is 40%? If the following years earnings per share is $2.10 what will the payout ratio be if the firm...
What has been the trend in sales over the years presented? July 29, July 30, 2023 2022 (Unaudited) (Unaudited) Net sales $ 5,164,072 100.0% $ 4,643,014 100.0% Cost of sales 3,115,603 60.3% 2,773,824...
Calvin Johnson and Rudi Basecke did business as the Stockton Cheese Co., a partnership, which owned a building and equipment. The partners agreed to dissolve the partnership but never got around to...
In Figure, the magnetic flux through the loop increases according to the relation B = 6.0t 2 + 7.0t, where B is in milliwebers and t is in seconds. (a) What is the magnitude of the emf induced in...
The Chernobyl disaster was a catastrophic nuclear accident that occurred on April 26, 1986, at the Chernobyl Nuclear Power Plant in Ukraine, which was under the direct jurisdiction of the central...
On July 2, 2009, the McGraw Corporation issued $500,000 of convertible bonds. Each $1,000 bond could be converted into 20 shares of the companys $5 par value stock. On July 3, 2011, when the bonds...
Norma Electronics sell its products for cash and on credit. It usually provides 6 % of its credit sales as allowance for bad and doubtful debts. In the month of April 2 0 x 1 , Norma Electronics...
Ashley Rhymer established Fair Play Financial Services on January 1, 2010. Fair Play Financial Services offers financial planning advice to its clients. The effect of each transaction and the...
Solve the equation L+di/dt + Ri= Eo, sin wt dt where L, R and E are constants and discuss the case when t increases indefinitely.
Q.2 2.1, 2.2, 2.3 torch SIC company requires Linux system backup for their company. They asked the system administrator to arrange their server. Describe the file and directory structure by -a. b. -...
On January 1, 2024, Company A paid $100,000 for 8,000 shares of Company B's common stock. For the year ended 12/31/24, Company B reported net income of $52,000, paid a cash dividend of $20,000 (in...
In each of the following cases, explain who pays the Zakat due on the assets or the income as mentioned below? a ) Ahmed and Mohamed are partners in a Toy Company. Ahmed own 6 0 % of the company,...
Actists Pty Ltd is a yoga/Pilates equipment wholesaler that sells to major yoga and Pilates studios across Australia, with 90% of their sales being credit sales. They have a 30-days payment term,...
Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $2,900 and $23,500, respectively, each year. Estimate Trevor's...
A 0.120 kg ball travelling at 11.0 m/s impacts a solid massive steel wall. The ball bounces straight back at 8.9 m/s. -C Before v=11.0 m/s After v=8.9 m/s If the ball was in contact with the steel...
On October 1, 2014, the Dow Jones Industrial Average (DJIA) opened at 17,042 points. During that day it lost 237 points. On October 2 it lost 4 points. On October 3 it gained 209 points. Deter-mine...
The Hagerman Heavy Metal Mining (H2M2) Corporation wants to diversify its operations. Some recent financial information for the company is shown here: Stock price .......................... $ 76...
Glenboro Fire Prevention Corp. has a profit margin of 6.80 percent, total asset turnover of 1.95, and ROE of 18.27 percent. What is this firms debtequity ratio?
In 1999, a certain assistant professor of finance bought 12 initial public offerings of common stock. He held each of these for approximately one month and then sold. The investment rule he followed...
The first three energy levels $E(\mathrm{eV})$ of the fictitious element $\mathrm{X}$ are $\ldots . . \ldots$ shown in Figure P29.56. a. What wavelengths are observed in the absorption spectrum...
A sodium atom in the $3 p$ state emits a photon, decreasing the energy of the atom by $2.10 \mathrm{eV}$. By how much does the orbital angular momentum of the atom change? Does it increase or...
A 1.5 V D-cell battery is rated at $15,000 \mathrm{~mA} \cdot \mathrm{h}$. For how long could such a battery power a flashlight bulb rated at $1.5 \mathrm{~W}$ ?

Data Bee-Bee Honey PE Ratio 4 12 Share in Issue 120 000 240 000 Earnings (after tax)

Question:

Expert Answer:

211 Earning Pwer share After merger Data Earnings After Tax ... View the full answer

Fundamentals of Corporate Finance

Students also viewed these accounting questions