Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 27, 2024

Company A considers acquiring company B. Shares of the company A trade at $30 and there are 5,000 of A shares outstanding. Company B has

Company A considers acquiring company B. Shares of the company A trade at $30 and there are 5,000 of A shares outstanding. Company B has 200 shares outstanding worth $100 each. If A acquires B, then the resulting synergy will amount to $10,000.

Suppose A offers to exchange every Bs share for $130 in cash. What will be the total benefit for the existing shareholders of B?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

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

Public Finance A Contemporary Application of Theory to Policy

Authors: David N Hyman

11th edition

9781305474253, 1285173953, 1305474252, 978-1285173955

More Books

Students also viewed these Finance questions

Question

8. The government places a tax on the purchase of socks. a. Illustrate the effect of this tax on equilibrium price and quantity in the sock market. Identify the following areas both before and after...

Answered: 1 week ago

Question

★★★★★

Aslan County purchased $3,000,000 of bonds as a General Fund investment on March 1, 20X7, for $3,060,000 plus four months accrued interest of $80,000. The bonds mature in four years and two months....

Answered: 1 week ago

Question

★★★★★

Answered: 1 week ago

Question

★★★★★

Mike, single, age 3 1 , reports the following item for 2 0 2 3 Salary $ 5 0 , 0 0 0 Nonbusiness bad debt ( 6 , 0 0 0 ) Casualty Asset A ( personal use property held for two years ) again 3 , 0 0 0...

Answered: 1 week ago

Question

★★★★★

Donald's employer fires Donald after only four months on the job, a clear breach of Donald's written twelve-month employment contract. Donald is entitled to recover as damages: nothing as Donald is...

Answered: 1 week ago

Question

★★★★★

Your team is tasked with mapping out and identifying major gaps and redundancies in the program 's organizational structure , roles and responsibilities . Which tool should you apply to analyze this...

Answered: 1 week ago

Question

★★★★★

Discussion Questions, What must an F & B professional have before determining the types of foods and beverages to purchase? Why? What does it mean to standardize a recipe? Look at the following list...

Answered: 1 week ago

Question

★★★★★

Salubrity Plus is a medical equipment supply company with offices and retail locations in Ontario and Qubec. The organization started operations in 2005 and currently has an approximate annual...

Answered: 1 week ago

Question

★★★★★

Which sentences contain commonly misused verbs that are used correctly? Instruction: Choose all options that best answer the question. Answer Choices The market developments affected the company's...

Answered: 1 week ago

Question

★★★★★

LO2.1 Differentiate between laissez-faire capitalism, the command system, and the market system.

Answered: 1 week ago

Question

★★★★★

4. What are the advantages of using capital in the production process? What is meant by the term division of labor? What are the advantages of specialization in the use of human and material...

Answered: 1 week ago

Question

★★★★★

LO2.4 Explain the operation of the invisible hand and why market economies usually do a better job than command economies at efficiently transforming economic resources into desirable output.

Answered: 1 week ago

Previous Question Next Question