Firm A is acquiring Firm B. Firm A’s share price is $6 and Firm B's share price is $3.50. Firm A has 3 million shares outstanding and Firm B has 1.8 million shares outstanding. Firm A expects a discounted synergistic value of $2.5 million from the merger. If Firm A pays $7.5 million cash to Firm B's shareholders, what is the value of the merged firm? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit any commas and the $ sign in your response. For example, an answer of $1,000.50 should be entered as 1000.50.)
Answers
The number of outstanding shares for the combined firm is (3 + 1.8) 4.8 million shares. The total purchase price is 1.8 million shares × $3.5/share + $7.5 million = $14.1 million.The dollar amount of synergistic value expected by Firm A has to be accounted for to compute the total value of the merged firm.
This is computed by adding the purchase price of $14.1 million to the synergistic value of $2.5 million. The total value of the merged firm is $16.6 million.Solution:First, let’s find out the total amount that Firm A is paying for Firm B:Cash paid to Firm B shareholders = 1.8 million shares × $3.50/share + $7.5 million = $14.1 million.
Now, let’s find the value of the merged firm:Total value of the merged firm = Total cash paid + Discounted synergistic value= $14.1 million + $2.5 million = $16.6 millionTherefore, the value of the merged firm is $16,600,000.00.
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Related Questions
in what year did starbucks serve its first caffè latte?
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Answer:
1984
Explanation:
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Candonia has a comparative advantage in the production of , while lamponia has a comparative advantage in the production of . Suppose that candonia and lamponia specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of million pounds of sugar and million pounds of lemons.
Answers
Answer:
Candonia has a comparative advantage in the production of LEMONS, while Lamponia has a comparative advantage in the production of COFFEE. Suppose that Candonia and Lamponia specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of 36 million pounds of coffee and 36 million pounds of lemons.
Explanation:
Since a lot of information was missing, I looked it up and found the attached graphs. The graphs referred to production of coffee and lemons, but I guess they are similar questions.
For every pound of lemons that Candonia produces, it will not be able to produce ¹/₂ pounds of coffee (opportunity cost of producing lemons instead of coffee).
For every pound of coffee that Lamponia produces, it will not be able to produce 1¹/₂ pounds of lemons (opportunity cost of producing coffee instead of lemons).
a project completed successfully and was closed. the project manager started to plan the release of the team members. this step of releasing the team members, in the team development life cycle is termed as..
Answers
The step of releasing the team members in the team development life cycle is termed as "Project Closure."
This is the final phase of the project, where the project manager ensures that all project deliverables are completed successfully, and all stakeholders are satisfied with the results.
During this phase, the project manager also releases the team members, which involves wrapping up any loose ends and ensuring that all documentation and knowledge transfer have taken place.
This step is crucial in closing out the project and ensuring that all team members are ready to move on to their next projects.
So, in summary, the answer to your question is "Project Closure" is the term used for releasing the team members in the team development life cycle.
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There should be no minimum wage in America. Workers should negotiate their pay! Do you agree with this statement? Why or why not?
Answers
Answer:
Minimum wage is important because it dictates the lowest hourly wage that a worker much be given. If it was removed, corporations may be able to give workers lower than what minimum wage would have been. Corporations also may outright refuse to pay the workers what they want leaving them jobless.
Hope that helps
Which of the following is NOT an organization to protect consumers?
The American Red Cross
The U.S. Food and Drug Administration
Federal Trade Commission
Better Business Bureau
Answers
Answer:
It might be D- whic
Match the example with the type of individual difference and advantage it shows.
Answers
Answer:
Sergey likes to play soccer in his free time = Hobbies
Scott's parents moved from the U. S. to Australia = Background
Bihn wants to make enough money to send his children to school = goal
Yolanda us outgoing and able to make friends quickly = Ability
Cheyenne is currently working as a junior dance teacher in a big studio, to learn what she would need to know when she opens her own someday = experience
Melanie cares about fitness and the outdoors so she often participates in active outdoor activities like biking and mountain climbing = Lifestyle
Amandos favourite subject in school is world history = interest
How many francs is the tariff (“protecting duty”) that is added to a product that ends with a product that is priced 40 francs in paris?
Answers
Answer:
25
Explanation:
Need help please????!!!!!!
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Answer: The infection was transmitted though the tools the manicurist used on her. They we not new, or even cleaned. The form of transmission was indirect. This is because the person that had the flu was not in direct or physical contact with her. The manicurist could have stopped the spread of infection by simply cleaning the tools. Nadine could have prevented the spread of infection by asking for new tools to be used.
Explanation:
A food processor uses approximately 27,000 jars a month for its fruit juice product. Because of storage limitations, a lot size of 4,000 jars has been used. Monthly holding cost is $0.18 per jar, and reordering cost is $60 per order. The company operates an average of 20 days per montha. What penalty is the company incurring by its present order size?
b. The manager would prefer ordering 10 times each month but would have to justify any change in order size. One possibility is to simplify order processing to reduce the ordering cost. What ordering cost would enable the manager to justify ordering every other day?
c. Suppose that after investigating ordering cost, the manager is able to reduce it to $50. How else could the manager justify using an order size that would be consistent with ordering every other day?.
Answers
Answer:
what's the question name
Explanation:
you can't just out abc i need to have need to see the question
How does exercising help you become more creative? A. It helps you to be less rigid in your thinking. B. It helps you to be open-minded. C. It increases your ability to think on your feet. D. It reduces stress.
Answers
Answer: It reduces stress
Explanation:
Keyanna is thinking of marketing consulting as a potential future career. Identify each task associated with consulting as either producing research or consuming research.
1. collect and analyze data, and present the results to clients
2. keep up to date on current product trends
3. look at analyses conducted by other firms, and inform clients of the findings
4.test different marketing strategies to identify the best one
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Producing research involves gathering and evaluating data, as well as presenting the findings to clients.
Consuming - One activity related to consuming research is staying current on market trends. This is due to the fact that current research or data on product trends are reviewed and analyzed rather than fresh research being conducted.
Generating - A task included in producing research is testing many marketing techniques to find the most effective one. This is due to the fact that it entails performing fresh research by testing various marketing methods and assessing the outcomes to establish the most effective course of action.
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can someone help . i know I'm dumb:) x-5=7
Answers
Answer:
Hey Army
Nice to meet you:)
your answer is 12
as x-5=7
so x=7+5
x is 12
Stream life goes on and Dynamite. :)
Answer:
x=12
Explanation:
x-5=7
x-5+5=7+5
x=12
Click this link to view O*NET’s Work Styles section for Financial Analysts. Note that common work styles are listed toward the top and less common work styles are listed toward the bottom. According to O*NET, what are common work styles needed by Financial Analysts? Check all that apply.
attention to detail
hazard tolerance
dependability
dominance
safety
stress tolerance
Answers
Answer:
attention to detaildependabilitystress toleranceExplanation:
edg2020
Answer:A,C,D,F
explain trust
An investor purchased 639 shares of common stock, $23 par, for $24,282. Subsequently, 107 shares were sold for $27 per share. What is the amount of gain or loss on the sale? O. 51.177 gain Ob $1,171 loss Oc. $1,605 gain Od 51.605 los
Answers
The amount of gain on the sale is c. $1,605.
You must deduct the purchase price from the sale price in order to determine the gain or loss on the sale of shares. A good outcome indicates a capital gain, whereas a negative outcome indicates a loss1.
In this instance, the investor spent $24,282 to buy 639 shares of ordinary stock at $23 par. 107 shares were subsequently sold for $27 each.
639 shares were purchased for $24,282 total. Each share costs $24,282 divided by 639, or $38.
107 shares are being sold for a price of $27 each. $27 multiplied by 107 shares to get $2,889.
The following formula can be used to determine the sale's gain or loss:
Gain or Loss = Sale Price - Purchase Price
$2,889 - ($38 * 107) = $1,605 gain1.
Therefore, the amount of gain on the sale is c. $1,605.
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Analysts are forecasting LifeTech Corporation's common stock price to be $120 at the end of one year. Also, LifeTech will pay a dividend of $2.60 one year from now. You plan to buy the stock now and sell at the end of one year. If you require a 13% return, what would you be willing to pay to buy the stock now
Answers
Answer:
Price to pay now for the stock = $96.278
Explanation:
The price of the stock would be the present value(PV) of the future cash flow expected from it discounted at the required rate of 13%
Hence we would add the present value of he dividend and the resent of he price at the end of the period
PV = CF × (1+r)^(-n)
CF- Cash Flow
R- rate of return- 13%
n- number of years
PV of dividend = 2.60 × (1.13)^(-1) = 2.30
PV of stock price after a year = 120× (1.13)^(-1) = 93.97
Price to pay now for the stock = 2.30 + 93.97 = $96.278
Price to pay now for the stock = $96.278
name the nice large tectonic plates in the world
Answers
Answer:
Pacific Plate. Pacific major plate is the largest which underlies the Pacific Ocean
Explanation:
hope this is what you meant!
Answer:
The Pacific Plate
Explanation:
it be 103,300,000 square kilometers in size. its found underneath the Pacific Ocean, it's the largest put of all the tectonic plates.
explain the method of bookkeeping ?
Answers
About how long is a true elevator pitch?
Answers
Answer:
It's about 30 seconds
Hope this helps
Explanation:
Franchising is a contractual agreement between a firm, the franchisor, and another firm or individual, known as the ______.
Answers
Franchising is a contractual agreement between a firm, the franchisor, and another firm or individual, known as the franchisee.
1. Four electricians are discussing special requirements for health care facilities. Electrician A says that a nursing home is required to include an emergency system circuit. Electrician B says that GFCI outlets are required in the bathroom area of some critical-care patient rooms. Electrician C says that a nursing home is not required to include an emergency system circuit. Electrician D says that GFCI outlets are required in the bathroom area of the critical-care patient rooms. Which of the following statements is correct?
A. Electrician C is correct.
B. Electrician A is correct
C. Electrician D is correct
D. Electrician B is correct.
2. Four electricians are discussing wiring under raised floors in information technology equipment rooms. Electrician A says that wiring under the raised floor requires fire-resistant walls, floors, and ceilings between other occupancies. Electrician B says that wiring under the raised floor requires fire resistant halfway up the walls and floors between other occupancies. Electrician C says that the room must employ a disconnecting means that removes half of the power to all equipment in the room. Electrician D says that a disconnecting means isn't necessary for the room. Which of the following statements is correct?
A. Electrician B is correct.
B. Electrician C is correct.
C. Electrician D is correct.
D. Electrician A is correct.
3. Five electricians are discussing grounding. Electrician A says that 6" of an 8' rod or pipe electrode is allowed to extend above the finished grade. Electrician B says that a "made" grounding electrode constructed from copper rod that’s 5/8" in diameter and 100" long is acceptable per the NEC. Electrician C says that 6" of a 16' rod or pipe electrode is allowed to extend above the finished grade. Electrician D says that a "made" grounding electrode constructed from copper rod that's 5/8" in diameter and 50" long is acceptable per the NEC. Which of the following statements is correct?
A. Electrician C is correct.
B. Electrician B is correct.
C. Electrician D is correct.
D. Electrician A is correct.
4. Where resistance to ground of a single-made electrode exceeds 25 ohms,
A. additional electrodes must be added until the resistance to ground is lower than 25 ohms.
B. the electrode can be omitted.
C. no additional electrodes are required.
D. one additional electrode must be added.
5. According to the NEC, what type of threadless connectors and couplings must be used with rigid metal conduit if installed in masonry?
A. Rain tight.
B. Concrete tight.
С. Weatherproof.
D. Wet/damp listed.
6. Four electricians are discussing NEC requirements for common appliances.
Electrician A says that new, cord-and-plug, single-phase room A/C units must have factory-installed LCDI or AFCI protection. Electrician B says that the cord for a household refrigerator must be visible and readily accessible to be used as a disconnect switch. Electrician C says that the cord and plug don't have to be new. Electrician D says that an old cord with a spliced new plug can be used. Which of the following statements is correct?
A. Electrician A is correct.
B. Electrician B is correct.
С.Electrician C is correct.
D.Electrician D is correct.
7. Four electricians are discussing switchboards and panelboards. Electrician A says that switchboards and panelboards must provide front and rear access to meet accessibility requirements. Electrician B says that unused circuit breakers mounted in a panelboard should not be identified on the circuit directory until they're actually connected for a circuit application. Electrician C says that switchboards can be installed in cabinets. Electrician D says that switchboards aren't intended to be installed in cabinets. Which of the following statements is correct?
A. Electrician C is correct.
B. Electrician D is correct.
C. Electrician A is correct.
D. Electrician B is correct.
8. Four electricians are discussing the installation of a luminaire in a clothes closet.
Electrician A says that because the clothes-hanging rod is located five inches from the ceiling, the light fixture that's to be mounted directly over the rod must be recessed.
Electrician B says that a surface-mounted incandescent fixture must be placed at least six inches from the storage area. Electrician C says that a surface-mounted incandescent fixture must be placed at least 12 inches away from the storage space. Electrician D says that a surface-mounted incandescent fixture must be placed at least nine inches away from the storage space. Which of the following statements is correct?
A. Electrician B is correct.
B. Electrician A is correct.
С. Electrician C is correct.
D. Electrician D is correct.
Answers
The correct options are
B. Electrician A is correct.
D. Electrician A is correct.
B. Electrician B is correct.
A. Additional electrodes must be added until the resistance to ground is lower than 25 ohms.
B. Concrete tight.
A. Electrician A is correct.
C. Electrician A is correct.
A. Electrician A is correct.
What are electricians?Generally, An electrician is a skilled laborer who specializes in the electrical wiring of structures, transmission lines, stationary machinery, and other apparatus that is connected to the field.
Installing new electrical components, repairing and maintaining existing electrical infrastructure, and maintaining and repairing existing electrical infrastructure are all possible jobs for electricians.
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cultural and behavioural expectations of studying for a degree in business management
Answers
The Cultural and behavioral expectations of studying for a degree in business management is to be able to know the relationship and behaviors of employees, managers and customers.
What is cultural behavior in business?The cultural behavior in business helps to be familiar with the employees, managers and customers and the relationship between them as regards the culture of the business.
This help to know the team's behavior, as well as setting them up to to record success in workplace.
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A buyer and seller agree that the sale will be contingent on the buyer obtaining financing. The buyer later decides she doesn't want the property, so she doesn't bother to fill out any loan applications. The contingency is dropped from the agreement because:
Answers
Answer:
the buyer did not make a reasonable, good faith effort to fulfill the contingency.
Explanation:
When a contract is formed a contingency clause requires a particular action to take place in order for the agreement to be valid.
If the condition is not met them the agreement is invalid.
For example is a sales agreement is contingent on a seller providing delivery services and this is not done, the buyer is released from his obligation of making the purchase.
So in this case if the sale is contingent on the buyer obtaining financing and he does not make an effort to obtain a loan.
The contingency can be dropped because the buyer did not make a reasonable, good faith effort to fulfill the contingency.
Scholarships awarded for high GPAs or test scores are based on _____.
Answers
Answer: Merit-based...
what are the components of micro environment
Answers
Explanation:
the factors or elements in a firm's immediate environment which affect its performance and decision-making; these elements include the firm's suppliers, competitors, marketing intermediaries, customers and publics.
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There is a growing movement in the United States led by the progressive wing of the Democratic Party to have the federal minimum wage raised to $15/hr. Some people agree with the $15/hr minimum wage for the United States, while others oppose raising the minimum wage. The arguments against raising the minimum wage range from the government should not dictate salaries to it will cause low wage workers to lose their jobs since businesses cannot afford a $15/hr minimum wage.
Do you agree with a $15/hr federal minimum wage? The current federal minimum wage in the United States is $7.25/hr. Fully explain your position on this issue in 2 - 3 paragraphs.
Source: Surviving an Unlivable Wage l Full Documentary (Financial Literacy)
Answers
In my opinion, minimum wage should be increased because an increase in minimum wage would reduce poverty, increase consumer spending, and promote economic growth.
Why Should Minimum Wage be Increased?Minimum wage has not kept pace with inflation, and that the current federal minimum wage of $7.25/hr is not a living wage in most parts of the United States. A $15/hr minimum wage would provide a more realistic living wage for many low-wage workers, but there is disagreement on whether this should be achieved through federal legislation or through individual state action.
Ultimately, whether or not to raise the minimum wage is a complex issue that involves balancing the needs of workers, businesses, and the overall economy. It is important for policymakers to carefully consider the potential impacts of any minimum wage increase and to find ways to support low-wage workers without unduly burdening businesses.
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Baker Industries' net income is $21,000, its interest expense is $5,000, and its tax rate is 25%. Its notes payable equals $23,000, long-term debt equals $70,000, and common equity equals $260,000. The firm finances with only debt and common equity, so it has no preferred stock. What are the firm's ROE and ROIC? Do not round intermediate calculations. Round your answers to two decimal places.
ROE:
ROIC:
Answers
The firm's Return on Equity (ROE) is approximately 8.08% and the Return on Invested Capital (ROIC) is approximately 6.51%.
To calculate the Return on Equity (ROE) and Return on Invested Capital (ROIC), we need to use the following formulas;
ROE = Net Income/Average Common Equity
ROIC = (Net Income - After-Tax Interest Expense) / (Notes Payable + Long-Term Debt + Common Equity)
Given;
Net Income = $21,000
Interest Expense = $5,000
Tax Rate = 25%
Notes Payable = $23,000
Long-Term Debt = $70,000
Common Equity = $260,000
First, we need to calculate the After-Tax Interest Expense by multiplying the interest expense by (1 - tax rate)
After-Tax Interest Expense=Interest Expense × (1 - Tax Rate)
After-Tax Interest Expense = $5,000 × (1 - 0.25)
After-Tax Interest Expense = $5,000 × 0.75
After-Tax Interest Expense = $3,750
Next, we can calculate the ROE;
ROE = Net Income/Average Common Equity
ROE = $21,000 / $260,000
ROE ≈ 0.0808 or 8.08%
Then, we calculate the ROIC;
ROIC = (Net Income - After-Tax Interest Expense) / (Notes Payable + Long-Term Debt + Common Equity)
ROIC = ($21,000 - $3,750) / ($23,000 + $70,000 + $260,000)
ROIC ≈ 0.0651 or 6.51%
Therefore, the firm's ROE is approximately 8.08% and the ROIC is approximately 6.51%.
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.. If two variables have a direct relationship on a graph, it indicates that
A. both variables are not related.
B. as one variable rises, the other variable falls.
C. both variables are moving in the same direction.
D. as one variable rises, the other variable is constant.
Answers
Answer:
Option C. Both variables are moving in the same direction.
Explanation:
The reason is that in the direct relationship, the variables move in the same direction which means if one of the variable increases then the other will also increase and vice versa. So the only option that satisfies this condition is option C.
Look at the examples below, and select the change in matter that is an example of a physical change.
ice melting
leaves changing color
starting a fire
Answers
Answer:
Ice melting doesn't change its chemical property so it's a physical change
Answer:
ice melting is an example of physical change in which there is a change in matter where ice (solid) melts to liquid ...
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If your marginal propensity to consume is 0. 4 and you get an additional $300 in income, you would spend ________ on consumption.
Answers
I will spend $120 on consumption if marginal propensity to consume is 0. 4 and i get an additional $300 in income.
What is marginal propensity to consume(MPC)?Marginal propensity to consume (MPC) is the portion of an income that a person spends instead of saving the income.
The marginal propensity to consume(MPC) is computed as
= Change in consumption / Change in income.
However, the consumption would be
= Change in income * marginal propensity to consume(MPC)
= 0.4 x 300
= $120
Hence, I will spend $120 on consumption if marginal propensity to consume is 0. 4 and i get an additional $300 in income.
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Which advantage of a sole proprietorship could also be a disadvantage?.
Answers
Answer:
Unlimited liability
Explanation: