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

Question

1 Approved Answer

Company A is acquiring Company B. Company As share price is $40 and Company B's share price is $30. Company A has 1,200,000 shares outstanding

Company A is acquiring Company B. Company As share price is $40 and Company B's share price is $30. Company A has 1,200,000 shares outstanding and Company B has 1,400,000 shares outstanding. Company A estimates the present value of synergistic benefits from the merger to be $10,000,000. If Company A pays $45,000,000 cash to Company B's shareholders, what is the merged company's value?

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

International Finance Transactions Policy And Regulation

International Finance Transactions Policy And Regulation

Authors: Hal S. Scott

15th Edition

159941547X, 978-1599415475

More Books

Students also viewed these Finance questions

Question

★★★★★
JRC, Inc. is a multinational U.S. public company that operates in more than 10 countries. Based on the belief that the SEC is likely to require a move to IFRS, the CEO has decided to form an IFRS...

Answered: 1 week ago

Question

★★★★★
The stockholders of SIERRA stock are in the 15% tax bracket. The firm recently announced a dividend of 2.50 per share. Today is the ex-dividend date and the opening price was 25.00 a share. What was...

Answered: 1 week ago

Question

★★★★★
What factors contribute to distortions in memory?

Answered: 1 week ago

Question

★★★★★
What are some of the potential benefits from outsourcing arrangements that need to be carefully assessed?

Answered: 1 week ago

Question

★★★★★
You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of 2 . 8 percent per year, compounded monthly for the first six months, increasing thereafter to...

Answered: 1 week ago

Question

★★★★★
please only answer the question below Holtzman Clothiers's stock currently sells for $25.00 a share. It just paid a dividend of $1.50 a share (i.e., Do - $1.50). The dividend is expected to grow at a...

Answered: 1 week ago

Question

★★★★★
. Consider the power transmission-line tower shown in the accompanying figure. The members have a cross-sectional area of 10 in and a modulus of elasticity of E = 29 106 lb/in. Using ANSYS, determine...

Answered: 1 week ago

Question

★★★★★
When Inga finds out that she is to be terminated at 3:00pm, she runs back to her cash drawer at 2:30pm and takes $700 that she suspects that she'll need to live on because the hotel does not give...

Answered: 1 week ago

Question

★★★★★
A light at the bottom of a fish tank sends two beams upwards to the surface as shown. (Use n = 1.00; n water = 1.33.) Air 45 Water 30 Calculate the path of the rays after they strike the water-air...

Answered: 1 week ago

Question

★★★★★
In today's world, many organisations are expanding rapidly, and each day, systems perform countless transactions and generate large quantities of new data, some of which are as simple as adding new...

Answered: 1 week ago

Question

★★★★★
A student, a minor both in fact and appearance, bought on credit and took delivery of a telescope from a 30-year-old seller for an agreed price of $100. Upon reaching her majority soon thereafter,...

Answered: 1 week ago

Question

★★★★★
If you plan to video or audio-record some of your data, how equipped are you to subsequently transcribe the dialogue into a written form? What arrangements might you make for this?

Answered: 1 week ago

Question

★★★★★
How clear are you about the purpose of the different types of data gathering you plan to undertake? How clearly developed are the themes to be explored? How clearly are these themes derived from your...

Answered: 1 week ago

Question

★★★★★
To what extent might qualitative data from social media platforms contribute to the achievement of your research objectives or questions?

Answered: 1 week ago

Previous Question Next Question