How do I get this answer?Bidder Inc. is taking over Target Inc. Bidder's price per share is $59. The number of shares outstanding of Bidder Inc. is 600,000. BidderInc. has net income of $1,710,000. Target Inc. has a price per share of $47 and it has 380,000 shares outstanding. Bidder Inc. will do ashare exchange with Target Inc. For the share exchange Bidder Inc. will value Target Inc.'s shares at a 36% over Target Inc.'s current stockprice. Target Inc. net income is $230,000. The merger generates no synergies. What is the NPV of the acquisition for Bidder Inc.? Youranswer should be accurate to two decimal places. If you believe the answer is zero it should be recorded as 0.00.Answer:x (-3,813,190.91)

NPV of acquisition is net benefit or loss due to acquisition that means how much is paid above or…

Answered: How do I get this answer? Bidder Inc.…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section: Chapter Questions

Problem 12P

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According to a company press release, on January 5, 2012, Hansen Natural Corporation changed its name to Monster Beverage Corporation. According to Yahoo Finance, on that day the value of the company stock (symbol: MNST) was $15.64 per share. On January 5, 2018, the stock closed at $63.49 per share. This represents an increase of nearly 306%. A. Discuss the factors that might influence the increase in share price. B. Consider yourself as a potential shareholder. What factors would you consider when deciding whether or not to purchase shares in Monster Beverage Corporation today?
The shareholders of Bread Company have voted in favor of a buyout offer from Butter Corporation. Information about each firm is given here: Bread Butter Price-earnings ratio 5.26 21.04 Shares outstanding 57,000 228,000 Earnings $ 205,000 $ 1,025,000 Bread's shareholders will receive one share of Butter stock for every five shares they hold in Bread. What will the EPS of Butter be after the merger? What will the PE ratio be if the NPV of the acquisition is zero?
NEED ASAP. Solve correctly and show your computations. On March 1, 2021, Hans Corp. issued 1,000 shares of its P20 par value ordinary share and 2,000 shares of its P20 par value convertible preference share for a total of P80,000. At this date, Hans ordinary share was selling for P36 per share, and the convertible preference share was selling for P27 per share. What amount of the proceeds should be allocated to Hans’s convertible preference share?
Damron, Incorporated, has 205,000 shares of stock outstanding. Each share is worth $79, so the company’s market value of equity is $16,195,000. Suppose the firm issues 44,000 new shares at the following prices: $79, $73, and $67. What will be the ex-rights price and the effect of each of these alternative offering prices on the existing price per share?
Required: How much is the book value per ordinary share? In case RED Corporation is liquidated, how much would be the total amount to be received by an investor who holds 2,000 ordinary shares and 1,000 preference shares? How much is the book value per ordinary share assuming the preference shares are also participating? Assuming the preference shares are also participating, in case RED Corporation is liquidated, how much would be the total amount to be received by an investor who holds 2,400 ordinary shares and 500 preference shares? Using Problem 1, how much is the book value per ordinary share assuming the preference shares are non-cumulative and participating up to 12%? Assuming the preference shares are non-cumulative and participating up to 12%, in case RED Corporation is liquidated, how much would be the total amount to be received by an investor who holds 2,400 ordinary shares and 500 preference shares?
Cleveland Corporation is interested in acquiring Lewis Tool Company by swapping 0.4 share of its stock for each share of Lewis stock. Certain financial data on these companies are given in the following table. Item Cleveland Corporation Lewis Tool Earnings available for common stock $200,000 $50,000 Number of shares of common stock outstanding 50,000 20,000 Earnings per share (EPS) $4.00 $2.50 Market price per share $50.00 $15.00 Price/earnings (P/E) ratio 12.5 6 Cleveland has sufficient authorized but unissued shares to carry out the proposed merger. How many new shares of stock will Cleveland have to issue to make the proposed merger? If the earnings for each firm remain unchanged, what will the post-merger earnings per share be? How much, effectively, has been earned on behalf of each of the original shares of Lewis stock? How much, effectively, has been earned on behalf of each of the original shares of Cleveland Corporation’s stock?
The shareholders of Bread Company have voted in favor of a buyout offer from Butter Corporation. Information about each firm is given here: Bread Butter Price-earnings ratio 16 23 Shares outstanding 96,000 230,000 Earnings $ 180,000 $ 900,000 Bread's shareholders will receive one share of Butter stock for every three shares they hold in Bread. a-1. What will the EPS of Butter be after the merger? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) a-2. What will the PE ratio be if the NPV of the acquisition is zero? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What must Butter feel is the value of the synergy between these two firms? a-1. EPS a-2. PE b. Synergy value
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George's Equipment is planning on merging with Nelson Machinery. George's will pay Nelson's shareholders the current value of their stock in shares of George's Equipment. George's currently has 4,600 shares of stock outstanding at a market price of $31 a share. Nelson's has 1,600 shares outstanding at a price of $38 a share. What is the value per share of the merged firm?
Firm A has 196,000 shares of stock outstanding, each with a market price of $10 per share. Firm B has 150,000 shares of stock outstanding, each with a market value of $25 per share. Firm B have agreed to take over Firm A using an exchange ratio will be 3:2 meaning that firm A stockholders will receive 3 share of firm B for every 2 shares they currently hold in firm A. The earnings of the combined firm is $2,500,000. What is the EPS of the combined firm? Select one: a. $5.63 b. $7.80 c. $5.80 d. $6.63

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