XYZ Corp is worth $20 million as a standalone firm. ABC Ltd. has offered 400,000 shares valued

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

Question:

XYZ Corp is worth $20 million as a standalone firm. ABC Ltd. has offered 400,000 shares valued at $60 each to merge with XYZ. Post merger, however, ABC's shares are worth only $55 per share. What was the cost of the merger?

Related Book For answer-question

Global Marketing management

ISBN: 978-0470505748

5th edition

Authors: Masaaki Kotabe, Kristiaan Helsen

See More Books

Posted Date: May 15, 2023 09:55 AM

See More Questions

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Dr. Richard Swadron, president of Stephenville University (SU) has contracted Fanshawe Consulting Advisors (FCA) to submit a report involving six elements of the SU operations. While president...
The following figures have been extracted from the accounting records of Lavalamp on 30 September 20X3: (i) Lavalamp has spent $6 million (included in the cost of sales) during the year developing...
b) Calculate the Fault Level in MVA if a symmetrical bolted 3-phase fault occurs on the LV side of the 5MVA Transformer at 11kV c) The Tranformer impedance is 6% - Calculate the short circuit current.
(a) Explain how implicit differentiation works. (b) Explain how logarithmic differentiation works.
A positively charged bead having a mass of 1.00 g falls from rest in a vacuum from a height of 5.00 m in a uniform vertical electric field with a magnitude of 1.00 x 104 N/C. The bead hits the ground...
Why would a founder decide to form a membership organization rather than choosing a self - perpetuating board? When might this structure be essential? When might it be an unnecessary challenge?
The income from operations and the amount of invested assets in each division of Steele Industries are as follows: a. Compute the rate of return on investment for each division. b. Which division is...
The following chart shows the enrollment years for different class ranks of a school in the current year and compares them to the previous year. An alternative chart to show this would be a...
1. Compare and contrast the various segments of Chinese luxury consumers and customers profiled in the case. 2. How have luxury goods brands responded to President Xi Jinpings crackdown on...
Segmentation variables typically used to categorise and describe consumer markets are the following except A . Geographic B . Demographic C . Positioning D . Psychographic
The understanding of internal control that relates to an assertion should be used to take three actions. Name these three actions.
Inherent risk and control risk differ from detection risk in that they a. Arise from the misapplication of auditing procedures. b. May be assessed in either quantitative or nonquantitative terms. c....
Why the pulley of a rope brake dynamometer water cooled?
Why crowning of pulley is done?
Control risk assessment procedures include all of the following except a. Inspection of documents. b. Observation of procedures. c. Confirmation of bank balances. d. Inquiry of client personnel.
Research the "Moral Model of Addiction" through a search engine and looking through journal articles in the UMass Global Online Library. Analyze why the Medical/Disease Model of Addiction is...
The relationship described in question 7 does not always appear to hold. What factors, besides the number of firms in the market, might affect margins?
Enumerate some of the legal issues that international business managers need to take cognizance of in host countries.
What are some of the visible signs that reflect the current increased economic interdependence among countries? What are some reasons for this growth in interdependence and for the rise in global...
Explain the bottom-of-the-pyramid paradigm. From the multinational's perspective, is the BOP a golden opportunity or is it simply a mirage?
Many choices involve _________ of something to do rather than whether to do something.
In acting rationally, people respond to _________.
Economists emphasize _________ thinking because the focus is on additional, or _________, choices, which involve the effects of _________ or _________ the current situation.

XYZ Corp is worth $20 million as a standalone firm. ABC Ltd. has offered 400,000 shares valued

Question:

Expert Answer:

To calculate the cost of the merger we need to first calculate t... View the full answer

Global Marketing management

Students also viewed these finance questions