Stock-for-Stock OfferDubon Inc. is considering the acquisition of the smaller Wells Co. Dubon has 4,750,000 shares outstanding that are currently selling for $47.85. TheWells Co. has 2,350,000 shares outstanding that are selling at $35.65. If Dubon offers the shareholders of the Wells Co. a number of shares based onthe current share prices, what portion of the new firm will the Wells stockholders own after the transaction? (The answer is a percentage, round to twodecimal places, e.g. 42.75)Numeric Response

During a merger, instead of buying the shares for cash, the companies may provide stock for buying…

Stock-for-Stock Offer Dubon Inc. is considering the acquisition of the smaller Wells Co. Dubon has 4,750,000 shares outstanding that are currently selling for $47.85. The Wells Co. has 2,350,000 shares outstanding that are selling at $35.65. i Dubon offers the shareholders of the Wells Co. a number of shares based on the current share prices, what portion of the new firm will the Wells stockholders own after the transaction? (The answer is a percentage, round to two decimal places, e.g. 42.75)

Stock-for-Stock Offer Dubon Inc. is considering the acquisition of the smaller Wells Co. Dubon has 4,750,000 shares outstanding that are currently selling for $47.85. The Wells Co. has 2,350,000 shares outstanding that are selling at $35.65. i Dubon offers the shareholders of the Wells Co. a number of shares based on the current share prices, what portion of the new firm will the Wells stockholders own after the transaction? (The answer is a percentage, round to two decimal places, e.g. 42.75)

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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On May 1, 2020, Sunco Limited purchased a call option from Moonco Corporation. The option gave Sunco the right to purchase shares in a third company, Galaxy Company. Sunco settled the options in cash on June 16, 2020. Following are additional details pertaining to the option: Number of shares that can be purchased with the call option 7,400 Call option exercise price per share $ 10.03 Market price per share of Galaxy Company on May 1, 2020 $ 10.03 Price paid by Sunco to purchase the option $ 1,800 Market price per share of Galaxy Company on May 31, 2020 $ 11.24 Fair value of call option on May 31, 2020 $ 9,200 Market price per share of Galaxy Company on June 16, 2020 $ 11.29 Fair value of call option on June 16, 2020 $ 8,800 Sunco has a year end of May 31. Required: Prepare the journal entries required on the books of Sunco Limited on each of the…
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Br. Shares are IPO published on sale and listed at 8,200 shares in primary market . The investors at IPO offer the price 18.00 with an unwriting discount at 6.5% Secondary market investors however were paying only 16.10 per share for Netshoes at 31.025 at 935 sharesoutstanding. total proceeds =!PO offer price for * IPO.
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