Acquirer Shares OutstandingTarget Shares OutstandingAcquirer Share PriceTarget Share PriceCash Consideration in percentTakeover PremiumGiven the above data, what is the amount of stock consideration involved in the deal? (Rounding tothe closest whole number)22,00066,000800,0005,000$8.00$16.0025%10%5,280,000

The companies are acquired by the large companies and payments are done in cash and in term of…

Answered: Acquirer Shares Outstanding Target…

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter14: Security Structures And Determining Enterprise Values

Section: Chapter Questions

Problem 1EP

See similar textbooks

Similar questions

Preference Shares, Definite Life with Liquidating Value The entity received P4,500,000 cash from the issuance of its 9%, 10-year P5,000,000 par value preference shares.Additionally assume that these shares have a liquidating value of P5,200,000. How much is the cost of the preference shares using the following methods? 1. Yield-to-maturity formula 2.
4. An entity showed the following data:Share capital, par value P50 5,000,000Share premium 200,000Retained Earnings 2,000,000Market value of share on declaration date 75Market value of share on distribution date 85Treat each item independently: e. If the entity would declare a 2 for 1 share split, How much would be the new par value?
4. An entity showed the following data:Share capital, par value P50 5,000,000Share premium 200,000Retained Earnings 2,000,000Market value of share on declaration date 75Market value of share on distribution date 85Treat each item independently: c. How much would be the total shareholders’ equity after a 10% share dividend declaration? d. If the entity would declare a 1 for 5 share split, What would be the balance of retained earnings?
You have been provided with the following information for the year ended 30 June 2022 for ABCLtd:RNet profit for the year -R1 800 000Weighted average number of shares (WANOS) outstanding during the year-R 120 000Average fair value per share -R30.00Weighted average number of shares (WANOS) under option during the year -R25 000Exercise price for shares under option during the year -R28.00REQUIRED:Q.2.1 Explain the purpose and objective of disclosing diluted earnings per share.
4. An entity showed the following data:Share capital, par value P50 5,000,000Share premium 200,000Retained Earnings 2,000,000Market value of share on declaration date 75Market value of share on distribution date 85Treat each item independently: a. If the entity would declare a 1 for 5 share dividend, what amount would be charged to retained earnings? b. What amount will be credited to share premium if the entity would declare 15% share dividend?
Preferred stock Par value Sale price Flotationcost Annual dividend A $ 100 $ 101 $ 9.00 11% B 40 38 $ 3.50 8% C 35 37 $ 4.00 $ 5.00 D 30 26 5% of par $ 3.00 E 20 20 $ 2.50 9% Stock C Par value $ 35 Sale price $ 37 Flotation cost $ 4.00 Annual dividend $ 5.00 Proceed from sale Cost of preferred stock By using cell references to the given data calculate the proceeds from sale of preferred stock C. By using cell references to the given data calucalte the cost of preferred stock C.
Preferred stock Par value Sale price Flotationcost Annual dividend A $ 100 $ 101 $ 9.00 11% B 40 38 $ 3.50 8% C 35 37 $ 4.00 $ 5.00 D 30 26 5% of par $ 3.00 E 20 20 $ 2.50 9% Stock B Par value $ 40 Sale price $ 38 Flotation cost $ 3.50 Annual dividend 8% Dividend payment Proceed from sale Cost of preferred stock By using cell references calculate the dividend payment of preferred Stock B. By using cell references calculate the proceeds from sale of referred stock B. By using cell references calculate the cost of preferred stock B.
Preferred stock Par value Sale price Flotationcost Annual dividend A $ 100 $ 101 $ 9.00 11% B 40 38 $ 3.50 8% C 35 37 $ 4.00 $ 5.00 D 30 26 5% of par $ 3.00 E 20 20 $ 2.50 9% Stock E Par value $ 20 Sale price $ 20 Flotation cost $ 2.50 Annual dividend 9% Dividend payment Proceed from sale Cost of preferred stock By using cell references to the given data calucalte the dividend payment of preferred stock E. By using cell references to the given data calculate the proceeds from sale of preferred stock E. By using cell references to the given data calculate the cost of preferred stock E.
PPP Company provided the following shareholders’ equity on December 31, 2020: Preference share capital, 12% P100 par 1,000,000 Ordinary share capital, P100 par 4,000,000 Share premium 2,000,000 Retained earnings 1,000,000 Dividends have been paid on the preference share up to December 31, 2018. Questions: 1. Assuming that the preference share is cumulative and nonparticipating, compute for the book valueper ordinary share. 2. Assuming that the preference share is cumulative and nonparticipating, compute for the book value per preference share.
What is the total amount that should be reported in profit or loss relating to the securities during 2020?Single choice. P 640,000 P 150,000 P 190,000 P 340,000 How much is the gain or loss to be recognize on the sale of 50% of DEF shares? P 20,000 gain 0 P 10,000 loss P 190,000 gain
11. The following data of Slapshock Corporation as of December 31, 2019 showed the following: Preference share capital, P 100 par P 820,000; Ordinary share capital, P 30 par, 300,000 shares authorized, 100,000 shares issued and outstanding P3,000,000; Preference share premium P410,000; Ordinary share premium P3,300,000. What was the original issue price per share of preference share capital? Using data in no. 11, what was the original issue price per share of ordinary share capital? Using data in no. 11, how many shares of preference share capital were issued and outstanding as of December 31, 2019?
What is the par value per share? * Mars Corporation recorded the following joumal entry: Land Preference share capital Share premium-preference To record issuance of preference shores @120 Per share. 450,000 420,000 30,000

SEE MORE QUESTIONS

Recommended textbooks for you

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

Entrepreneurial Finance

Finance

ISBN:

9781337635653

Author:

Leach

Publisher:

Cengage

SEE MORE TEXTBOOKS

Acquirer Shares Outstanding Target Shares Outstanding Acquirer Share Price Target Share Price Cash Consideration in percent Takeover Premium 800,000 5,000 $8.00 $16.00 25% 10% Given the above data, what is the amount of stock consideration involved in the d the closest whole number)