Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Shareholders if Flanney Company have voted in favour of buyout offer from Stultz Corporation. Information about each firm is given here:

Price-earnings ratio Flanney 18.2 Stultz 30 Shares outstanding Flanney 78,000 Stultz 300,000 Earnings Flanney $130,000 Stultz $910,000 Flannye's shareholders will get one share of Stultz stock for every 3 shares they hold in Flanney.

i) What will the ESP of Stultz be after the merger?

ii) What will the PE ratio be if the NPV of the acquisition is zero?

iii) What must Stultz feel is the value of the synergy between these two firm?

2) You are analyzing a project and have prepared the following data:

Cash flow in years:
0: -$169,000
1: $46,200
2: $87,300
3. $41,000
4: $39,000

Required payback: 2.5 years
Required AAR: 7.25%
Required return: $8.5%

Compute profitability index? Must you accept project?  Please show all work.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914954

Have any Question? 


Related Questions in Basic Finance

Potters violin co has just issued nonconvertible preferred

Potter's Violin Co. has just issued nonconvertible preferred stock with a par value of $100 and an annual dividend rate of 18.66 percent. The preferred stock is currently selling for $119.42 per share. which rate of retu ...

In addition to the key words you should also be able to

In addition to the key words, you should also be able to define each of the following terms: ethics Nuremberg Code National Research Act Belmont Report APA Ethics Code clinical equipoise consent form confederate placebo ...

1 when preparing a personal statement of financial

1. When preparing a personal statement of financial condition, should assets and liabilities be presented on the basis of historical cost or estimated current value? 2. In a personal statement of financial condition, wha ...

Suppose chapman corporation is planning to pay a 2 per

Suppose Chapman Corporation is planning to pay a $2 per share dividend to its common stockholders. If the common stock price after the ex-dividend date is $50, what was the stock price before the ex-dividend date? $50 $5 ...

Please in your own words what are dividends what are some

Please, in your own words. What are dividends? What are some different types of dividends?

Define a shear joint define an axial shear joint define

Define a shear joint? Define an axial shear joint? Define faying surface? Define friction-type joint? Define bearing-type joint? Draw a graph illustrating the way a shear joint fails? Is bolt preload important in a shear ...

Ford is about to issue a new corporate bond face value 1000

Ford is about to issue a new corporate bond, face value= $1,000, coupon rate 8% (Annual), term to maturity= 4 years. You know that a very similar bond issued by GM is already being traded in a bond market with its market ...

1 describe why teams are being formed more frequently in

1. Describe why teams are being formed more frequently in business today. What are some of the special considerations required for a team to be successful? 2. Defend a position on the following question: Does radical org ...

1 describe in your words the meaning of spatialtemporal

1. Describe in your words the meaning of spatial/temporal integration in logistical system integration. 2. What justification of logic can be presented to support the placement of a warehouse in a logistical system? 3. W ...

The frequency range for a telephone is between 500 hz and

The frequency range for a telephone is between 500 Hz and 4000 Hz. Why does a telephone not do a very good job of transmitting music?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen