Consider Firm X and Y. The firm had total earnings of $500,000 and Shares outstanding of 2,250,000. Firm X per-share market value is 350.5 Firm X per-share book value is $88. Firm Y had total earnings of $1,450,000 and Shares outstanding of 222,500. Firm Y per-share market value is $698.5. Firm Y per-share book value is $126.5. Assume that Firm X acquires Firm Y by issuing long-term debt to purchase all the shares outstanding at a merger premium of $5.375. Assuming that neither firm has any debt before the merger, what would be the total assets for the new company XY. Assume that Firm Y acquires Firm X by issuing long-term debt to purchase all the shares outstanding at a merger premium of $7.875. Assuming that neither firm has any debt before the merger, what would be the total assets for the new company YX. NOTE: Write the number. Do not answer in millions or in thousands. If your answer is 23,254,267.6849 answer 23254267.6849
Dividend Policy
A dividend is a part of the profit paid to the shareholder in an organization. The management of the organization has the right to decide the policy for giving a dividend from the earnings to the shareholder. However, an organization is not in the obligation to declare a dividend for the investor. Dividend policy differs from organization to organization. As the management has the only authority to decide dividend rate, dividend amount, and time of dividend payout by considering all other elements that create an impact on the payment of a dividend.
Stocks And Dividends
Stock or equities are generally sold and bought in the Stock Exchange or which is popularly known as the stock market. Stocks are issued in the Stock Exchange for the sole purpose of raising funds for the Corporation or the company itself. Now since an individual has purchased a portion of the Corporation or company, he or she may claim to be a part of the earnings or profit of the company.
Please answer in excel form if possible
- Consider Firm X and Y. The firm had total earnings of $500,000 and Shares outstanding of 2,250,000. Firm X per-share market value is 350.5 Firm X per-share book value is $88. Firm Y had total earnings of $1,450,000 and Shares outstanding of 222,500. Firm Y per-share market value is $698.5. Firm Y per-share book value is $126.5.
- Assume that Firm X acquires Firm Y by issuing long-term debt to purchase all the shares outstanding at a merger premium of $5.375. Assuming that neither firm has any debt before the merger, what would be the total assets for the new company XY.
- Assume that Firm Y acquires Firm X by issuing long-term debt to purchase all the shares outstanding at a merger premium of $7.875. Assuming that neither firm has any debt before the merger, what would be the total assets for the new company YX.
NOTE: Write the number. Do not answer in millions or in thousands. If your answer is 23,254,267.6849 answer 23254267.6849
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