Your company has earnings per share of 55 it has 11, Ask an Expert

Finance

Your company has earnings per share of $ 5$5. It has 11 million shares? outstanding, each of which has a price of $ 43$43. You are thinking of buying? TargetCo, which has earnings per share of $ 1$1?, 11 million shares? outstanding, and a price per share of $ 30$30. You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. Suppose you offer an exchange ratio such? that, at current? pre-announcement share prices for both? firms, the offer represents a 20 %20% premium to buy TargetCo. Assume that on the announcement the target price will go up and your price will go down to reflect the fact that you are willing to pay a premium for TargetCo. Assume that the takeover will occur with certainty and all market participants know this on the announcement of the takeover. a. What is the price per share of the combined corporation immediately after the merger is? completed? b. What is the price of your company immediately after the? announcement? c. What is the price of TargetCo immediately after the? announcement? d. What is the actual premium your company will? pay? a. What is the price per share of the combined corporation immediately after the merger is? completed? The share price will be ?$

View complete question

Financial Management, Finance

Category:- Financial Management
Reference No.:- M92744275

Have any Question?Write your Review or question?

Related Questions in Financial Management

Objectivedemonstrate the ability to perform financial

OBJECTIVE Demonstrate the ability to perform financial calculations and analysis related to the concepts covered in this course. PURPOSE The purpose of this project is to give you practical experi- ence with financial co ...

Question 1 discuss how your organizations overall business

Question : 1) Discuss how your organization's overall business strategy and human resources planning affect one another. 2) Discuss an example of a company engaging in poor ethics and/or social responsibility. What were ...

In a long essay of 1500 words you must reflect on the

In a long essay of 1,500 words, you must reflect on the Palliser Furniture cases. Please answer the following three questions: Palliser Furniture Ltd. Palliser Furniture Ltd.: The China Question Questions : What were Pal ...

Watch the video moral imaginationand answer the following

Watch the video: "Moral Imagination" And Answer the following questions: 1. Can you think of a time when you or someone whom you know used moral imagination? If so, what motivated you (or this individual) to use moral im ...

Exerciseas the executive of a bank or thrift institution

Exercise As the executive of a bank or thrift institution you are faced with an intense seasonal demand for loans. Assuming that your loanable funds are inadequate to take care of the demand, how might your Reserve Bank ...

Management control systems and national cultures and

Management Control Systems and National Cultures and Corporate Social Responsibility o What steps, if any, is Amazon taking to be sensitive to the national culture. o What is Amazon doing with regard to Corporate Social ...

Part 1 conduct internet research sources must be documented

Part 1. Conduct Internet research, (sources must be documented using MLA format), and write a brief analysis of the current status of the U.S. economy. Include current values and trends for at least three of the followin ...

The following examination is due no later than 9 am monday

The following examination is due no later than 9 AM Monday, October 22nd. You are to email me the exam in an XLSX file named after yourself and containing your section. For example, if your name is Leslie King, the file ...

Using the framework discussed in the background readings

Using the framework discussed in the background readings, critically analyze General Mills' strategic choices at the Corporate level (remember that "corporate" level is the very highest level of the organization, with lo ...

Nbsppad 6227fall2018nbspassignmenteach problem is worth

PAD 6227 Fall2018 Assignment Each problem is worth one-half of the grade for this assignment. Make sure to carefully edit your work. 1. The Department of Revenue wants to add more people to the unit that attempts to co ...

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

Recent Questions

Ask Financial Management Expert