Problem 10. Firm B is going to acquire Firm T. The acquisition will be done via a share exchange. Firm B will exchange two of its shares for every one of Firm T's shares. Synergy is $260,000 Shares Outstanding Price per Share Earnings Firm B (Bidder) 80,000 $15 100,000 What is the takeover premium that has been paid to Firm T? a) $215,000 b) zero c) $172,500 d) $87,500 e) $260,000 Firm T (Target) 24,000 $25 60,000

Problem 10. Firm B is going to acquire Firm T. The acquisition will be done via a share exchange. Firm B will exchange two of its shares for every one of Firm T's shares. Synergy is $260,000 Shares Outstanding Price per Share Earnings Firm B (Bidder) 80,000 $15 100,000 What is the takeover premium that has been paid to Firm T? a) $215,000 b) zero c) $172,500 d) $87,500 e) $260,000 Firm T (Target) 24,000 $25 60,000

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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A5 3a QRS N-Queries Company has an exciting new project that will cost $10,000,000. The company proposes to finance this project by issuing new shares with a rights offering. Currently, the company has 2,000,000 shares outstanding, each valued in the financial market at $30. With the rights offering, shareholders will be able to purchase one new share for a subscription price of $10. a. What is the rights-on price for each share, M0?
Bha
QUESTION 1 When a high P/E company pays a 40% premium to buy a low P/E company from a different industry, with the payment in stock. Which of the following is most likely to happen? Target stock price declines because the company will cease to exist. Acquirer stock price increases because acquier will have higher EPS. Target stock price increases because of the premium paid by the acquier. Target shareholder rejects the acquisition.
34. Firm B's one million shares of stock currently sell for $20 each. Firm A estimates the economic gain from the merger to be $10 million and is prepared to offer $22 cash for each share of B. What percentage of the merger gain will be captured by firm B's shareholders?A. 20.00%B. 33.33%C. 50.00%D. 60.00%
Question 10?
Acquiring Corporation is considering a takeover of Takeover Target Incorporated. Acquiring has 16 million shares outstanding, which sell for $30 each. Takeover Target has 8 million shares outstanding, which sell for $23 each. If the merger gains are estimated at $40 million, what is the highest price per share that Acquiring should be willing to pay to Takeover Target shareholders? Highest price per share
pls answer a b and c
Problem 3. BitBox has raised $10 million in a Series A round with $40 million post-money value and a 1.5x liquidation preference, and $25 million in a Series B round with a $75 million post-money value and a 3x liquidation preference plus seniority over Series A. What will Series A, Series B, and common shareholders receive if BitBox is sold for [a] $85 million? [b] $100 million? [c] $200 million? [d] $300 million?
please do question 14 d and question 9 a and b
Q14 An entity issued 1 500 debentures with face value of R20 000 each. The coupon rate on the debentures is 12% paid annually in arrears. In order to speed the sale of the debentures, the directors decided to issue them at 10% discount. What amount would be recorded by the entity in its statement of financial position under non-current liabilities? Select one: a. R20 000 b. R15 000 000 c. R30 000 000 d. R27 000 000
aa.9
Question 9 options: Joffrey Corporation, a publicly traded company, is requiring an additional $5,000,000. The company has decided that a rights offering could raise the funds that are required. Currently there are 300,000 outstanding common shares and the market price of $55.00 per share. Each shareholder would receive 1 right for every share they own. The subscription price will be $50.00. This means that 100,000 new shares will be issued ($5,000,000/$50). Given this information, 300,000 old shares/100,000 new shares would mean 3 rights plus the subscription price will be required to get 1 new share. Sansa Stark is a shareholder and has 6,000 shares of Joffrey’s Corporation and $280,000 cash in her bank account. She is Queen of the North! What is the value of one right? Round to 2 decimal places. What is the value of Sansa’s portfolio before the rights issue? Round to the nearest dollar. If Sansa exercises her rights and participates in the rights…

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