PRINCIPLES OF MANAGERIAL FINANCE (SUBSCR
15th Edition
ISBN: 9780137695621
Author: SMART
Publisher: PEARSON C
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Chapter 18, Problem 18.9P
1)
Summary Introduction
To determine: The ratio of exchange of shares.
Introduction:
The exchange of new shares with the existing shareholders of a firm which has been acquired or merged with other one is termed as ratio of exchange.
2)
Summary Introduction
To determine: The ratio of exchange of shares in market price.
Introduction:
The market price of the acquiring firm is exchange with market price of targeted firm is termed as ratio of exchange in market price.
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General Finance Question
Consider the following simplified financial statements for the Yoo Corporation (assuming no income taxes):
Income Statement
Balance Sheet
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Costs
$ 40,000 Assets
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$26,000
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19,000
Net income $ 5,840
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Total
$26,000
The company has predicted a sales increase of 20 percent. Assume Yoo pays out half of net income in the
form of a cash dividend. Costs and assets vary with sales, but debt and equity do not.
Prepare the pro forma statements. (Input all amounts as positive values. Do not round intermediate
calculations and round your answers to the nearest whole dollar amount.)
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$ 48000
40992
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$ 31200
Pro forma balance sheet
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7000
Equity
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Net income
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$ 31200
Total
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What is the external financing needed? (Do not round intermediate calculations. Negative amount
should be indicated by a minus sign.)
External financing needed
$
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The assets of the company consist of two zero-coupon bonds, one paying
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Express your answer to THREE DECIMAL PLACES.
Chapter 18 Solutions
PRINCIPLES OF MANAGERIAL FINANCE (SUBSCR
Ch. 18.1 - Prob. 18.1RQCh. 18.1 - Prob. 18.2RQCh. 18.1 - Prob. 18.3RQCh. 18.2 - Prob. 18.4RQCh. 18.2 - Prob. 18.5RQCh. 18.3 - Prob. 18.6RQCh. 18.3 - What is the ratio of exchange? Is it based on the...Ch. 18.3 - Prob. 18.8RQCh. 18.3 - Prob. 18.9RQCh. 18.3 - Prob. 18.10RQ
Ch. 18.3 - Prob. 18.11RQCh. 18.4 - Prob. 18.12RQCh. 18.4 - Define an extension and a composition, and explain...Ch. 18.5 - Prob. 18.14RQCh. 18.5 - What is the concern of Chapter 71 of the...Ch. 18.5 - Indicate in which order the following claims would...Ch. 18 - Prob. 1ORCh. 18 - Prob. 18.1STPCh. 18 - Prob. 18.2STPCh. 18 - Prob. 18.1WUECh. 18 - Prob. 18.2WUECh. 18 - Prob. 18.3WUECh. 18 - Prob. 18.4WUECh. 18 - Prob. 18.5WUECh. 18 - Tax effects of acquisition Connors Shoe Company is...Ch. 18 - Tax effects of acquisition Trapani Tool Company is...Ch. 18 - Prob. 18.3PCh. 18 - Prob. 18.4PCh. 18 - Cash acquisition decision Benson Oil is being...Ch. 18 - Prob. 18.6PCh. 18 - Prob. 18.7PCh. 18 - Prob. 18.8PCh. 18 - Prob. 18.9PCh. 18 - Prob. 18.10PCh. 18 - Prob. 18.11PCh. 18 - Prob. 18.12PCh. 18 - Prob. 18.13PCh. 18 - Prob. 18.14PCh. 18 - Prob. 18.15PCh. 18 - Prob. 18.16PCh. 18 - Prob. 18.17P
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