Stock-for-Stock Offer Dubon Inc. is considering the acquisition of the smaller Wells Co. Dubon has 4,750,000 shares outstanding that are currently selling for $47.85. The Wells Co. has 2,350,000 shares outstanding that are selling at $35.65. i Dubon offers the shareholders of the Wells Co. a number of shares based on the current share prices, what portion of the new firm will the Wells stockholders own after the transaction? (The answer is a percentage, round to two decimal places, e.g. 42.75)

Finance Loki Inc. and Thor Inc. have entered into a stock swap merger agreement whereby Loki will pay a 35% premium over Thor’s pre-merger price. A. If Thor’s pre-merger price per share was $37 and Loki’s was $52, what exchange ratio will Loki need to offer? B. On the day of the merger announcement, the increase in Thor (the target firm’s) stock price will be ______(higher/lower) than 35% (the takeover premium). C. Based on your answer in part B of this question, explain why you think Thor’s stock price increase will be higher or lower than the takeover premium at the time of the merger announcement.

On May 1, 2020, Sunco Limited purchased a call option from Moonco Corporation. The option gave Sunco the right to purchase shares in a third company, Galaxy Company. Sunco settled the options in cash on June 16, 2020. Following are additional details pertaining to the option:         Number of shares that can be purchased with the call option 7,400 Call option exercise price per share $           10.03 Market price per share of Galaxy Company on May 1, 2020 $           10.03 Price paid by Sunco to purchase the option $           1,800 Market price per share of Galaxy Company on May 31, 2020 $           11.24 Fair value of call option on May 31, 2020 $           9,200 Market price per share of Galaxy Company on June 16, 2020 $           11.29 Fair value of call option on June 16, 2020 $           8,800   Sunco has a year end of May 31.   Required: Prepare the journal entries required on the books of Sunco Limited on each of the…

Initial Public Offering (IPO), Istar Enterprises Shares Issued 25,000,000 Price per Share, Initially Offered to Public $80.00  Price, Close of First Day $83.00  IPO Underwriter Explicit Costs (percent of money raised) 0.07     Required:   Using the information above, calculate: total money raised from the IPO, underwriter costs, net proceeds to the firm, and value of the company at the end of the first day.     (Use cells A3 to B6 from the given information to complete this question.)     Proceeds and Costs from IPO Dollars Total Money Raised from IPO   Underwriter Costs   Net Proceeds to Company   Value of Company, End of First Day