Consider the same setting as Problem 18, but suppose instead 80 of the shareholders redeem their shares, and no warrants are exercised Data from problem 18 a What is the amount of cash per share contributed by the SPAC in that case b If the target is offered 300 million shares, what is the implied ...

a To determine the amount of cash per share contributed by the SPAC we need to calculate the ...

Consider the same setting as Problem 18, but suppose instead 80% of the shareholders redeem their shares,

Question:

Consider the same setting as Problem 18, but suppose instead 80% of the shareholders redeem their shares, and no warrants are exercised.

Data from problem 18

image text in transcribed

a. What is the amount of cash per share contributed by the SPAC in that case?

b. If the target is offered 300 million shares, what is the implied valuation of the combined company in this case?

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

Step by Step Answer:

Related Book For book-img-for-question

Corporate Finance

ISBN: 9781292446318

6th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

See More Books

Question Posted: Apr 14, 2024 12:00 AM

See More Questions

Four capacitors are connected to a DC battery (with an electric potential difference of V between a and b) as shown in Figure. Given: C C2 a C1 (F) C2 (F) C3 (FC4 (F) V (Volt) HH C4 48 29 36 65 23 C3...
Consider the same setting as problem 20, but suppose instead 80% of the shareholders redeem their shares, and no warrants are exercised. a. What is the amount of cash per share contributed by the...
Consider a SPAC with the following terms: 100 million units issued at $10 per share. Promote equal to 20% of the SPAC ownership. 25 million total warrants with an exercise price of $11.50 per...
A Continuous fractional column, operating at atmospheric pressure, is to be designed to separate a mixture containing 20 per cent benzene in toluene into an overhead product containing 90 percent...
What problems do you think Macys might experience with the new organizational structure? What factors suggest that the new organizational structure may face problems?
You are creating a chart using the data shown below. What is the best chart type and style to use in order to make the upward sales trend most obvious? A worksheet has sales data for months January...
What is a Pareto diagram? How can it be used as a quality control tool for projects? AppendixLO1
Shown below are net income amounts as they would be determined by Weihrich Steel Company by each of three different inventory costing methods ($ in 000s). Required: 1. Assume that Weihrich used FIFO...
Wildhorse produces and sells two products-aluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product...
Your uncle owns 10,000 shares of Walmart stock. He is concerned about the short-term outlook for Walmarts stock due to an impending major announcement. This announcement has received much attention...
Billy Ray Nibert was convicted of capital murder in the Circuit Court, Hillsborough County and he appealed. The Supreme Court of Florida affirmed the conviction, vacated the death sentence and...
Use Euler circles to check the validity of the arguments in Problems 3546. All cats are animals. This is not an animal. Therefore, this is not a cat.
A simple experiment has long been used to demonstrate how negative pressure prevents water from being spilled out of an inverted glass. A glass that is fully filled by water and covered with a thin...
A golf ball is hit on a level fairway. When it lands, its velocity vector has rotated through an angle of 90. What was the launch angle of the golf ball? Pyo By Dyz =0 Uso Range R x max dya
Repeat Prob. 10-18 for signed-magnitude binary numbers. Prob. 10-18 Derive an algorithm in flowchart form for the comparison of two signed binary numbers when negative numbers are in signed-2's...
Tideview Home Health Care, Inc., has a bond issue outstanding with eight years remaining to maturity, a coupon rate of 10 percent with interest paid annually, and a par value of $1,000. The current...
Captain Billy Whirlywhirl Hamburgers issued 7%, 10-year bonds payable at 70 on December 31, 2010. At December 31, 2012, Captain Billy reported the bonds payable as follows: Captain Billy Whirlywhirl...
Suppose that a particular activity has a very high variance in a PERT chart. How would this affect the result?
What is the maximum volume of 0.25 M sodium hypochlorite solution (NaOCl, laundry bleach) that can be prepared by dilution of 1.00 L of 0.80 M NaOCl?
( US$ millions ) 1 2 / 3 1 / 2 0 1 4 1 2 / 3 1 / 2 0 1 3 1 2 / 3 1 / 2 0 1 2 1 2 / 3 1 / 2 0 1 1 Net income $ 1 4 , 4 3 1 $ 1 2 , 8 5 5 $ 1 0 , 7 7 3 $ 9 , 7 7 2 Depreciation 3 , 5 4 4 2 , 7 0 9 1 ,...
net present value of zero
Suppose at Time 0 a dealer buys $100 par of a 4%-coupon 30-year bond for a price of par and posts the bond as collateral in a repo with zero haircut. The repo rate is 5%. Then, 183 days later, the...

Consider the same setting as Problem 18, but suppose instead 80% of the shareholders redeem their shares,

Question:

18. Consider a SPAC with the following terms: 100 million units issued at $10 per share. Promote equal to 20% of the SPAC ownership. 25 million total warrants with an exercise price of $11.50 per share. No PIPE investors.

Step by Step Answer:

a To determine the amount of cash per share contributed by the SPAC we need to calculate the ...View the full answer

Corporate Finance

Students also viewed these Business questions