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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Finance Loki Inc. and Thor Inc. have entered into a stock swap merger agreement whereby Loki will pay a 35% premium over Thor’s pre-merger price. A. If Thor’s pre-merger price per share was $37 and Loki’s was $52, what exchange ratio will Loki need to offer? B. On the day of the merger announcement, the increase in Thor (the target firm’s) stock price will be ______(higher/lower) than 35% (the takeover premium). C. Based on your answer in part B of this question, explain why you think Thor’s stock price increase will be higher or lower than the takeover premium at the time of the merger announcement.
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…
Initial Public Offering (IPO), Istar Enterprises Shares Issued 25,000,000 Price per Share, Initially Offered to Public $80.00 Price, Close of First Day $83.00 IPO Underwriter Explicit Costs (percent of money raised) 0.07 Required: Using the information above, calculate: total money raised from the IPO, underwriter costs, net proceeds to the firm, and value of the company at the end of the first day. (Use cells A3 to B6 from the given information to complete this question.) Proceeds and Costs from IPO Dollars Total Money Raised from IPO Underwriter Costs Net Proceeds to Company Value of Company, End of First Day
The owners’ equity accounts for Vulcano International are shown here: Common stock ($.50 par value) $ 20,000 Capital surplus 210,000 Retained earnings 587,300 Total owners’ equity $ 817,300 a-1. If the company declares a 4-for-1 stock split, how many shares are outstanding now? (Do not round intermediate calculations.) a-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b-1. If the company declares a 1-for-5 reverse stock split, how many shares are outstanding now? (Do not round intermediate calculations.) b-2. What is the new par value per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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
Kindly answer with corresponding solutions, round off the answer to two decimal places
Firm A is planning on merging with Firm B. Firm A will pay Firm B's stockholders the current value of their stock in shares of Firm A. Firm A currently has 1,800 shares of stock outstanding at a market price of $40 a share. Firm B has 1,200 shares outstanding at a price of $47 a share. What is the value per share of the merged firm?
None
PLEASE DO NOT GIVE SOLUTION IN NIMAGE FORMAT
15. Rock Company reported the following shareholders equity on December 31, 2022: Share capital, P50 par value 3,000,000 Share premium 600,000 Retained earnings 4,200,000 A 15% share dividend was declared and distributed on December 31, 2022 when entity’s share was selling at P65. What amount should be reported as share capital outstanding? Group of answer choices 3,450,000 3,585,000 3,615,000 4,185,000
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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 $

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