Myers Company Ltd. was formed 10 years ago by the issuance of 23,000 common shares to...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665967ac5426d_275665967abdf1c2.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665967ace936f_276665967ac84b2b.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665967ad8552c_277665967ad25564.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/665967ae30eac_277665967adb71a4.jpg)
Transcribed Image Text:
Myers Company Ltd. was formed 10 years ago by the issuance of 23,000 common shares to three shareholders. Four years later, the company went public and issued an additional 30,000 common shares. The management of Myers is considering a takeover in which Myers would purchase all of the outstanding common shares of Norris Inc. Two alternative proposals are being considered: PROPOSAL 1 Myers would offer to pay $413,100 cash for the Norris common shares. In addition, Myers would incur legal, appraisal, and finders' fees for a total cost of $5,100. PROPOSAL 2 Myers would issue 51,000 shares currently trading at $8.10 each for the Norris common shares. Other costs associated with the takeover would be as follows: Legal, appraisal, and finders' fees Costs of issuing shares $5,100 7,100 $12,200 Norris shareholders would be offered five seats on the 10-member board of directors of Myers, and the management of Norris would be absorbed into the surviving company. Balance sheet data for the two companies prior to the combination are as follows: D Cash Accounts receivable Inventory Myers Carrying Amount $ 561,000 168,200 375,120 Norris Fair Value Carrying Anount $ $3,500 $ 53,500 62,450 57,200 111,110 135,220 www.www. Myers Company Ltd. was formed 10 years ago by the issuance of 23,000 common shares to three shareholders. Four years later, the company went public and issued an additional 30,000 common shares. The management of Myers is considering a takeover in which Myers would purchase all of the outstanding common shares of Norris Inc. Two alternative proposals are being considered: PROPOSAL 1 Myers would offer to pay $413,100 cash for the Norris common shares. In addition, Myers would incur legal, appraisal, and finders' fees for a total cost of $5,100. PROPOSAL 2 Myers would issue 51,000 shares currently trading at $8.10 each for the Norris common shares. Other costs associated with the takeover would be as follows: Legal, appraisal, and finders' fees Costs of issuing shares $5,100 7,100 $12,200 Norris shareholders would be offered five seats on the 10-member board of directors of Myers, and the management of Norris would be absorbed into the surviving company. Balance sheet data for the two companies prior to the combination are as follows: D Cash Accounts receivable Inventory Myers Carrying Amount $ 561,000 168,200 375,120 Norris Fair Value Carrying Anount $ $3,500 $ 53,500 62,450 57,200 111,110 135,220 www.www.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Describe the Maintenance and Support phase of the SDLC. AppendixLO1
-
For the instant represented, point B crosses the horizontal axis through point O with a downward velocity v = 0.6 m/s. Determine the corresponding value of angular velocity ? OA of lina OA. 130 mm...
-
Question 4 AFN Company produces plastic that is used for injection-moulding applications such as gears for small motors. In 2020, the first year of operations, AFN Company produced 4,200 tonnes of...
-
Take a position on whether push-down accounting provides the most relevant information for both internal and external financial statement users. Provide support for your rationale.Compare the key...
-
Using the figure below, draw the FBD , ?Shear Force and Bending Moment diagrams and find the maximum internal moment for the beam shown. 10 kNm 10 kN 3 m
-
Suppose the goods market is: Y = 1800 - 100i and the LM curve Y = 500 +591, where x is the last digit of your ID number. Determine the equilibrium income (Y), interest rate (i). Explain the role of...
-
Complete the chart: [1] Length, L (m) Period, T (s) LogL LogT 0.10 0.63 0.20 0.90 0.30 1.00 0.40 1.27 0.50 1.42 0.60 1.55 0.70 1.68 0.80 1.80 0.90 1.90 1.00 2.02 Plot the data T vs L. [4 (title, axes...
-
A solid metal sphere with a diameter of 2 cm and a mass of 8 g is used for the following heat transfer experiments. You can assume the temperature throughout the inside of the metal sphere is...
-
2) A car 1200 kg is in a skid Force of friction 3200N and force of air resistance 1600N. Find the following i) The net force and acceleration of the car ii) The time required to stop from 95 km/hr...
-
Thank you so much for helping i will give you a upvote Question 6: (10pts) Suppose that in a particular application requiring a single battery, the mean lifetime of the battery is 4 weeks, with a...
-
What resource planning did we aspire to, and what was the result?
-
What did we find out in a final survey?
-
What are we proud of?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App