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Q: subscription price
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Kiser Mfg. is considering a rights offer. The company has determined that the ex- rights price will be $69. The current price is $75 per share, and there are 20 million shares outstanding. The rights offer would raise a total of $40 million. What is the subscription price? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)
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- Kiser Mfg. is considering a rights offer. The company has determined that the ex-rights price will be $78. The current price is $100 per share, and there are 25 million shares outstanding. The rights offer would raise a total of $50 million. What is the subscription price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Subscription priceChicago Savings Corp. is planning to make an offer for Ernie's Bank & Trust. The stock of Ernie's Bank & Trust is currently selling for $40 a share. a. If the tender offer is planned at a premium of 40 percent over market price, what will be the value offered per share for Ernie's Bank & Trust? (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Value offered per share b. Suppose before the offer is actually announced, the stock price of Ernie's Bank & Trust goes to $50 because of strong merger rumors. If you buy the stock at that price and the merger goes through (at the price computed in part a), what will be your percentage gain? (Do not round intermediate calculations. Input the amount as a positive percent value rounded to 2 decimal places.) Percentage gain c. Because there is always the possibility that the merger could be called off after it is announced, you also want to consider your percentage loss if that happens. Assume you buy the…Please show how to solve this step by step. ESS is currently trading at $300/share. You bought 200 shares of ESS and sold 2 CALL-option contracts on ESS with a strike price of $330 for $15 each. a. What will be your total $ and % gain/loss if ESS price is $335 at the expiration date?b. What will be your total $ and % gain/loss if ESS price is $350 at the expiration date?c. What will be your total $ and % gain/loss if ESS price is $270 at the expiration date?
- Lipsion Ltd company is thinking about investing in one of two potential new productsfor sale. The projections are as follows: year revenue/ product s revenue/ product v0 (150,000) outlay (150000) outlay1 14000 150002 24000 253333 44000 520004 84000 63333 Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%. Then decide which product should be selected and why ?Can you please explain in a summary of (one or two paragraphs) how you get the answer of section A to G. I have the answer but I need more foreclosure on how you get the answer (the procedure or lets say the steps you used to get the answer)Suppose you want to short-sell 1 share of BRK.A which is traded at $600,000 (i.e., Berkshire Hathaway). The initial margin required is 50% and the maintenance margin is 30%. At what price level you would receive a margin call? 650,000 640,000 690,000 620,000
- Lipsion Ltd company is thinking about investing in one of two potential new productsfor sale. The projections are as follows: year revenue/ product s revenue/ product v0 (150,000) outlay (150000) outlay1 14000 150002 24000 253333 44000 520004 84000 63333 Calculate the IRR for Product V only using 1% and 17% to 2 d.p.XYZ Company is offered to purchase ABC Company with EPS of Php12 and P/E ratio of 5; while DEF Company has EPS of Php15 and P/E ratio of 4. What is the value of the two companies? Which one is a better? Why?ABC has 1 million shares outstanding, each of which has a price of $24. It has made a takeover offer of XYZ Corporation which has 1 million shares outstanding, and a price per share of $2.39. Assume that the takeover will occur with certainty and all market participants know this. Furthermore, there are no synergies to merging the two firms. a. Assume ABC made a cash offer to purchase XYZ for $5.04 million. What happens to the price of ABC and XYZ on the announcement? What premium over the current market price does this offer represent? b. Assume ABC makes a stock offer with an exchange ratio of 0.21. What happens to the price of ABC and XYZ this time? What premium over the current market price does this offer represent? c. At current market prices, both offers are offers to purchase XYZ for $5.04 million. Does that mean that your answers to parts (a) and (b) must be identical? Explain. a. Assume ABC made a cash offer to purchase XYZ for $5.04 million. What happens to the price of ABC…
- Can you help me with this problem with step by step explanation, please?Please show how to solve this CPT is currently trading at $120/share. You bought 3 CALL-option contracts on CPT with a strike price of $110 for $16 each. a. What will be your total $ and % gain/loss if CPT price is $120 at the expiration date?b. What will be your total $ and % gain/loss if CPT price is $140 at the expiration date?c. What will be your total $ and % gain/loss if CPT price is $125 at the expiration date?Suppose the DJIA stands at 24,200. You want to set up a long straddle by purchasing 100 calls and an equal number of puts on the index, both of which expire in three months and have a strike of 242. The put price is listed at $4.25 and the call sells for $5.25. a. What will it cost you to set up the straddle, and how much profit (or loss) do you stand to make if the market falls by 650 points by the expiration dates on the options? What if it goes up by 650 points by expiration? What if it stays at 24,200? b. Repeat part a, but this time assume that you set up a short straddle by selling/writing 100 Oct 242 puts and calls. c. What do you think of the use of option straddles as an investment strategy? What are the risks, and what are the rewards? a. To set up the long straddle, it will cost (Round to the nearest dollar. Enter a positive number for the cost.) If the market on the long straddle falls by 650 points by the expiration dates on the options, the profit (or loss) is $ (Round to…