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

Question

1 Approved Answer

Lovely Bookshop wishes to acquire Miracle Stationery for RM700,000. Lovely Bookshop expects the merger to provide incremental earnings of about RM64,000 a years for 10

image text in transcribed

Lovely Bookshop wishes to acquire Miracle Stationery for RM700,000. Lovely Bookshop expects the merger to provide incremental earnings of about RM64,000 a years for 10 years. The total market value for Lovely Bookshop is RM2 million while the Miracle Stationery is RM700,000. The number of share outstanding for Lovely Bookshop and Miracle Stationery are 1,000,000 and 550,000 respectively. Calculate the share price of this merged company. i. Market share price of the bidding firm (3 marks) Number of share to be exchange to the target firm

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

Public Finance

Public Finance

Authors: Harvey S. Rosen

5th Edition

025617329X, 978-0256173291

More Books

Students also viewed these Finance questions

Question

★★★★★
Project managers must be generalists rather than specialists. Yet, team members need to have more specialized, technical skills. Can a generalist manage a team of specialists effectively?

Answered: 1 week ago

Question

★★★★★
\f

Answered: 1 week ago

Question

★★★★★
5. Reconsider the situation from the perspective of your instructor. Do you think your instructor has the same objectives that you do? Why or why not? If there are differences between your objectives...

Answered: 1 week ago

Question

★★★★★
Jose Corporation has $4,000,000 of 9 percent, 25-year bonds dated March 1, 2010, with interest payable on February 28 and August 31. The companys fiscal year end in February 28. It uses the effective...

Answered: 1 week ago

Question

★★★★★
Lovely Bookshop wishes to acquire Miracle Stationery for RM700,000. Lovely Bookshop expects the merger to provide incremental earnings of about RM64,000 a years for 10 years. The total market value...

Answered: 1 week ago

Question

★★★★★
Starks firm wanted to construct a new parking lot and storage area and for that reason they signed a 5 Million contract with Lannister company limited. The work began during March 2022 and the...

Answered: 1 week ago

Question

★★★★★
Bias can be very difficult to overcome. For instance, social networks help people get jobs. While this benefits some, it means that it is harder for those outside the network. Why does this...

Answered: 1 week ago

Question

★★★★★
Name Mech HW-79 1. Consider the four block-and-spring(s) systems shown at right. Each block moves on a horizontal, frictionless table. The blocks all ha Case A springs are iden I have the same mass...

Answered: 1 week ago

Question

★★★★★
What basic/fundamental need must the CIFFA forwarder identify and take into account before offering a transport alternative? Question 3 options: Safety and security of the cargo Reasonable...

Answered: 1 week ago

Question

★★★★★
In recent years, the number of Americans who never marry has Multiple choice question. decreased. not changed. increased

Answered: 1 week ago

Question

★★★★★
When is it not acceptable to apply the auditing standards of another country or the International Standards on Auditing (ISAs)? The auditor is a licensed expert of those standards. The auditor uses...

Answered: 1 week ago

Previous Question Next Question