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Lu Dashboard X PDE Transcript.pdf X Home for sale: $19,900 x Movement | Dashboard X Connect X Course Hero X Enterprise Storage Con X + X n https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flearn.liberty.edu%252Fweba... APerformance EMail Lu Liberty Home Bb Blackboard College EMail in Linkedin ; Indeed d Thrift Savings Plan G Google Other favorites Exam 4 i Saved Help Save & Exit Submit 8 The management of Mitchell Labs decided to go private in 2002 by buying all 3.50 million of its outstanding shares at $18.40 per share. By 2006, management had restructured the company by selling off the petroleum research division for $13.50 million, the fiber technology division for $7.90 million, and the synthetic products division for $23 million. Because these divisions had been only marginally profitable, Mitchell Labs is a stronger company after the restructuring. Mitchell is now able to concentrate exclusively on contract research and will generate earnings per share of $1.45 this year. Investment bankers have contacted the firm and indicated 4 that if it reentered the public market, the 3.50 million shares it purchased to go private could now be reissued to the public at a P/E points ratio of 13 times earnings per share. 8 02:04:23 a. What was the initial cost to Mitchell Labs to go private? (Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer in millions, not dollars (e.g., $1,230,000 should be entered as "1.23").) Initial cost 64.40 million b. What is the total value to the company from (1) the proceeds of the divisions that were sold, as well as (2) the current value of the 3.50 million shares (based on current earnings and an anticipated P/E of 13)? (Do not round intermediate calculations. Round your answer to 2 decimal places. Enter your answer in millions, not dollars (e.g., $1,230,000 should be entered as "1.23").) Total value to the company million Mc Graw Hill IMG_1240.jpg . . . IMG_1239.jpg . . . IMG_1238.jpg . . . IMG_1237.jpg . . . PDF statement (1).pdf Open file . . . PDF statement.pdf Open file . . . Show all X Open file Open file Open file Open file Type here to search 19:39 13/10/2020Lu Dashboard X PDE Transcript.pdf X Home for sale: $19,900 x Movement | Dashboard X Connect X Course Hero X Enterprise Storage Con X + X n https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flearn.liberty.edu%252Fweba... APerformance EMail Lu Liberty Home Bb Blackboard College EMail in Linkedin ; Indeed Thrift Savings Plan GGoogle Other favorites Exam 4 i Saved Help Save & Exit Submit 8 b. What is the total value to the company from (1) the proceeds of the divisions that were sold, as well as (2) the current value of the 4 3.50 million shares (based on current earnings and an anticipated P/E of 13)? (Do not round intermediate calculations. Round your points answer to 2 decimal places. Enter your answer in millions, not dollars (e.g., $1,230,000 should be entered as "1.23").) 02:04:19 Total value to the company million c. What is the percentage return to the management of Mitchell Labs from the restructuring? Use answers from parts a and b to determine this value. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Percentage return % Screenshot Added Mc Graw Hill A screenshot was added to your Dropbox. IMG_1240.jpg Dropbox Open file . . . IMG_1239.jpg IMG_1238.jpg IMG_1237.jpg Open file . . . Open file . . . statement (1).pdf Open file . . . PDF Open file . . . Type here to search 19:39 13/10/2020
