ABC Co. Stock Price XYZ Co. Stock Price ABC Co. Cash XYZ Co. Cash ABC Co. Shares Outstanding XYZ Co. Shares Outstanding $26.00 $10.00 $2,000,000 $1,500,000 300,000 150,000 ABC Co. is considering an acquisition of XYZ Co. for a cash offer that values XYZ at 20% higher than its current market capitalization. Given the above data, calculate the takeover premium in dollar terms (Round to the closest dollar).

ABC Co. Stock Price XYZ Co. Stock Price ABC Co. Cash XYZ Co. Cash ABC Co. Shares Outstanding XYZ Co. Shares Outstanding $26.00 $10.00 $2,000,000 $1,500,000 300,000 150,000 ABC Co. is considering an acquisition of XYZ Co. for a cash offer that values XYZ at 20% higher than its current market capitalization. Given the above data, calculate the takeover premium in dollar terms (Round to the closest dollar).

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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33) can you please help with this question?
Linpro Industries is considering the acquisition of Odetics Inc. in a stock-for-stock exchange. Assume no immediate synergistic benefits are expected. Selected financial data on the two companies are shown below: Linpro Odetics Sales (millions) $480 $90 Net income (millions) $38 $10.4 Common shares outstanding (millions) 10 2.1 Earnings per share $3.80 $4.95 Common stock (price per share) $45.60 $74.25 Calculate Linpro's post-merger EPS if the Odetics shareholders accept an offer of $90 a share in a stock-for-stock exchange. Question 9Answer a. $4.38 b. $3.81 c. $4.29 d. $3.42
As an analyst of Firm A, you are investigating the possible acquisition of Firm T. You estimate that investors currently expect a 6% growth in A's earnings and dividends. Under new management this growth rate would be increased to 8%, without any additional capital investment. You are considering a stock swap merger. What is the maximum exchange ratio that you can afford? EPS Dividend/Share Number of Shares Stock Price Firm A $5 $3 1000000 $90 Firm T $1.5 $0.8 600000 $20
LYFT IPO was issued at $72/share. Before the IPO, Lyft had 240 million class A shares outstanding and wanted to issue additional 30 million class A shares. On top of that, Lyft gave its underwriters options to purchase another 5 million shares at $72 each. When Lyft stock price fell below the IPO price of $72, to support the stock price, up to how many shares the underwriters could buy from the open market without losing money? 5 million shares 30 million shares 35 million shares 240 million shares 275 million shares
A merger between Minnie Corporation and Mickey Corporation is under consideration. The financial information for these firms is as follows: Minnie Corporation Mickey Corporation Total earnings $1,682,000 $2,581,000 Number of shares of stock outstanding 290,000 890,000 EPS $5.80 $2.90 P/E ratio 10X 20X Market price per share $58 $58 a. On a share-for-share exchange basis, what will the postmerger EPS be? (Round the final answer to 2 decimal places.) Postmerger earnings per share $ b. If Mickey Corporation pays a 25 percent premium over the market value of Minnie Corporation, how many shares will be issued? (Do not round intermediate calculations.) Shares issued shares c. With the 25 percent premium, what will the postmerger EPS be? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Postmerger earnings per share $
ABCO Ventures is investing $1.2 million into Showco, and ABCO is receiving a 35% equity interest in Showco in return. Showco’s pre-money valuation is approximately: a. $420,000 b. $1.2 millionc. $2.2 million d. $3.4 millione. None of the above.
Assume perfect markets. TMX Corporation has 4 million shares outstanding and a share price of $50 per share. TMX wants to repurchase 1 million shares. What would be the share price immediately after they repurchase the shares? $37.50 $50.00 $66.67
(please correct answer and) Question 26 Firm A and Firm B are both all - equity firms. Firm A has 2,200 shares outstanding at a market price of $16 per share. Firm B has 4,020 shares outstanding at a market price of $18 per share. Firm B is acquiring Firm A for $30,000 in cash. The incremental value of the acquisition is $3,400. What is the net present value of the acquisition? $840-$990-$1,020 $ 8,600 $9,050

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