FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Principal, Inc. is acquiring Secondary Companies for $29 million in cash Principal has 2.5 million shares of stock outstanding at a market price of

image text in transcribed

2. Principal, Inc. is acquiring Secondary Companies for $29 million in cash Principal has 2.5 million shares of stock outstanding at a market price of $30 a share. Secondary has 1.6 million shares of stock outstanding at a market price of $15 a share. Neither firm has any debt. The synergy gains of the acquisition is $4.5 million. What is the NPV of the acquisition

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Measuring Business Interruption Losses And Other Commercial Damages An Economic Approach

Measuring Business Interruption Losses And Other Commercial Damages An Economic Approach

Authors: Patrick A. Gaughan

3rd Edition

1119647916, 9781119647911

More Books

Students also viewed these Accounting questions

Question

★★★★★
(a) What is the difference between a skewed distribution and a normal distribution? (b) What is the difference between a bimodal distribution and a normal distribution? (c) What does a rectangular...

Answered: 1 week ago

Question

★★★★★
7. What do you mean by the term fi nancing? Write down its features briefl y. [C.U. B.Com. (H), 2012]

Answered: 1 week ago

Question

★★★★★
understand the key processes, as described in classic models of job design, through which well-designed work contributes to employee health and performance;

Answered: 1 week ago

Question

★★★★★
List the major influences on business buyer behavior. Why is it important for the B-to-B marketer to understand these major influences?

Answered: 1 week ago

Question

★★★★★
Currie Company borrowed $17,000 from the Sierra Bank by issuing a 11% three-year note. Currie agreed to repay the principal and interest by making annual payments in the amount of $4,721. Based on...

Answered: 1 week ago

Question

★★★★★
A DFA FOR The set of all strings with an odd number of 0's and an odd number of 1's

Answered: 1 week ago

Question

★★★★★
Peggy works at a financial institution where there is high morale and employees are all willing to jump in to answer questions for each other and assist when someone needs help or faces a critical...

Answered: 1 week ago

Question

★★★★★
Frank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for his department's poor performance over the prior month. The department's...

Answered: 1 week ago

Question

★★★★★
You recently completed an accident investigation involving a worker injured by an unguarded blade on a table saw. The investigation revealed that the guard had been removed some months before by...

Answered: 1 week ago

Question

★★★★★
XYZ Insurance Company is a personal lines insurer with headquarters in Chicago and regional offices throughout the Midwest and Northeast. XYZ's reputation as a strong, reliable organization has...

Answered: 1 week ago

Question

★★★★★
A publishing house publishes three weekly magazines - - Daily Life, Agriculture Today, and Stuf's Up . Publication of one issue of each of the magazines requires the following amounts of production...

Answered: 1 week ago

Question

★★★★★
2. What is the relationship between compensable factors and job specifications?pg 87

Answered: 1 week ago

Question

★★★★★
Has our compensation committee thoroughly identified its duties and processes?pg 87

Answered: 1 week ago

Question

★★★★★
1. What is the difference between exempt and nonexempt jobs?pg 87

Answered: 1 week ago

Previous Question Next Question