Two all-equity firms are negotiating a merger. The acquirer has 20,000 shares outstanding with a market...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Two all-equity firms are negotiating a merger. The acquirer has 20,000 shares outstanding with a market price of $70 per share, while the target has 14,000 shares outstanding with a market price of $32 per share. The expected synergies from the transaction are valued at $115,000. If the exchange ratio is 0.5:1, then what will be the post-merger price per share of the consolidated firm? Two all-equity firms are negotiating a merger. The acquirer has 20,000 shares outstanding with a market price of $70 per share, while the target has 14,000 shares outstanding with a market price of $32 per share. The expected synergies from the transaction are valued at $115,000. If the exchange ratio is 0.5:1, then what will be the post-merger price per share of the consolidated firm?
Expert Answer:
Answer rating: 100% (QA)
To determine the postmerger price per share of the consolidated firm we need to calculate the total ... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
Students also viewed these finance questions
-
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...
-
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,...
-
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...
-
Refer to Example 9. After how many seconds will the rocket be (a) 240 ft above the ground? (b) 112 ft above the ground? Data from in Example 9 EXAMPLE 9 Using a Quadratic Function in an Application...
-
Two large, parallel, conducting plates are 12 cm apart and have charges of equal magnitude and opposite sign on their facing surfaces. An electrostatic force of 3.9 x 10-15 N acts on an electron...
-
Use a supply and demand graph of a market to demonstrate and explain the price an individual firm takes.
-
Which of the following procedures would likely lend insight into the risk of material misstatement arising from violations of laws and regulations? a. Confirming receivables balances with debtors. b....
-
Hawkins Manufacturing Company produces connecting rods for 4- and 6-cylinder automobile engines using the same production line. The cost required to set up the production line to produce the...
-
2. A motorboat's maximum velocity is 28mph. The current of the river that the boat is in is 8mph. a. If the boat travels at maximum speed with the current, what is its speed with respect to the...
-
Use the data in file agpop.dat for this exercise. Let yi be the value of acres92 for unit i and xi be the value of acres87 for unit i. Draw an SRS of size 400. Now generate missing data from your...
-
Consider the circuit in the diagram. 40.0 R w 70.0 R2 ww R3 120 V where R1 R2 R3 = 17.02 and R4 = 57.0 2. What current flows through the lower branch between points A and B?
-
A river 100 m wide flows 3 m/s due south. A boat that travels 3 m/s relative to the water is pointed due east as it crosses from the west bank. Relative to its starting point, the boat travels (to...
-
The titanium shell of an SR-71 airplane would expand when flying at a speed exceeding 3 times the speed of sound. If the skin of the plane is 400 degrees C and the linear coefficient of expansion for...
-
A construction worker accidentally drops a hammer from a height of 90m while working on the roof of an apartment building. The height, s, in meters, of the hammer after t seconds can be modeled by...
-
An electric transformer is used to switch voltage from one electric circuit to another. It consists of two coils, primary and secondary, that are connected to a magnetic field. These coils work as a...
-
The speed of sound in air depends on the temperature, humidity, altitude and other factors. In one study of an adult Ghost Bat (Macroderma gigas), with a mass of 143 g and a wingspan of 290 mm,...
-
EXCEL FORMULAS PLEASE Average return Variance Sigma Covariance of returns Correlation of returns Portfolio Proportion of A Proportion of B Portfolio average return Portfolio standard deviation...
-
This problem continues the Draper Consulting, Inc., situation from Problem 12-45 of Chapter 12. In October, Draper has the following transactions related to its common shares: Oct 1 Draper...
-
This is an action by purchasers of 5 percent convertible subordinated fifteen year debentures of BarChris Construction Corporation (BarChris). * * * The action is brought under Section 11 of the...
-
Define and discuss personal defenses.
-
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...
-
With reference to Exercise 11.9, (a) find a 95% confidence interval for the mean current density when the strain is \(x=0.50\); (b) find 95% limits of prediction for the current density when a new...
-
Use the expression on page 367, involving deviations from the mean, to calculate \(r\) for the following data: x Y 3 8 6 367 -205
-
If for certain paired data \(n=18\) and \(r=0.44\), test the null hypothesis \(ho=0.30\) against the alternative hypothesis \(ho>0.30\) at the 0.01 level of significance.
Study smarter with the SolutionInn App