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

Five years ago northwest water nww issued 50000000 face

Five years ago, NorthWest Water (NWW) issued $50,000,000 face value of 30-year bonds carrying a 14% (annual payment) coupon. NWW is now considering refunding these bonds. It has been amortizing $3 million of flotation co ...

Write a product recall letteryou have received two reports

Write a product recall letter. You have received two reports that users of your ten-stitch portable sewing machine, Sew-Now, have been injured when the needle broke off while sewing. One person was sewing lined denim, an ...

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 ...

1 give five examples of physiological measures2 what

1. Give five examples of physiological measures. 2. What considerations must a researcher keep in mind when writing the questions to be used on a questionnaire or in an interview? 3. What is a double-barreled question? 4 ...

1 suppose that apples profits are expected to grow twice as

1. Suppose that Apple's profits are expected to grow twice as fast as Microsoft's. Which firm's stock should be the better investment? Briefly explain. 2. Henry Blodget worked for Merrill Lynch during the dot-com boom. T ...

Write a 750 to 1000 word paper in your paper include the

Write a 750 to 1000 word paper. In your paper include the following: Complete questions A through J for the Mini Case involving Shrieves Casting Company. Please complete the paper in actual paper format including an intr ...

1 outline the differences between npv irr and pi what are

1. Outline the differences between NPV, IRR, and PI. What are the advantages and disadvantages of each technique? Do they agree with regard to simple accept or reject decisions? 2. Under what circumstances will the NPV, ...

1 from a tax perspective what primary requirements in a

1. From a tax perspective, what primary requirements in a lease transaction must be met in order for the IRS to consider the transaction a genuine lease? Why is a favorable IRS ruling regarding the tax status of a lease ...

The following table lists three financial instruments and

The following table lists three financial instruments and their deltas, gammas, and vegas for each $1 million notional principal under the assumption of a long position. (Long in a swap or FRA means to pay fixed and rece ...

What is the excess burden of taxation why is there an

What is the excess burden of taxation? why is there an excess burden, and what factors affect the size of the excess burden for a specific tax? if several goods are to be tax, how should the taxes be distributed to minim ...

  • 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