What is the post-merger value per share

Assignment Help Financial Management
Reference no: EM132014482

Wilson's has 4919 shares of stock outstanding at a market price per share of $17. Albertson’s has 19785 shares outstanding that sell for $22 a share. By merging, $14814 of synergy can be created. Albertson’s is acquiring Wilson's for $84,000 worth of Albertson stock.

What is the post-merger value per share? (Round answer to 2 decimal places, round intermediate calculations to 5 decimal places)

Reference no: EM132014482

Questions Cloud

Calculate project profitability index : Suppose you calculate a Project’s profitability index to be 1.4, what does it mean?
What is the value of the merger : What is the value of ABC following the merger?
What is the value of the option to wait : What is the value of the option to wait?
What debt-equity ratio is needed for the firm : What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?
What is the post-merger value per share : What is the post-merger value per share?
What will the total variable cost estimate be : If the company conducts a sensitivity analysis using a variable cost of $12, what will the total variable cost estimate be?
Proposed project using standard sensitivity analysis : Southern Goods is analyzing a proposed project using standard sensitivity analysis.
The initial cash flow for this building project : What amount should be used as the initial cash flow for this building project?
The appropriate discount rate-assuming average risk : The appropriate discount rate, assuming average risk, is:

Reviews

Write a Review

Financial Management Questions & Answers

  What is effective rate of interest

What is the effective rate of interest?

  Opportunity cost of investing in these preferred shares

What does this imply about the opportunity cost of investing in these preferred shares, based on market prices?

  How much money will you have on the date of your retirement

How much money will you have on the date of your retirement 35 years from today?

  Universal exports optimal capital structure

What capital structure shown in the preceding table is Universal Exports Inc's optimal capital structure?

  What will the stock price be in three years

The Jackson–Timberlake Wardrobe Co. just paid a dividend of $9.72 per share on its stock. The dividends are expected to grow at a constant rate of 2.18 percent per year indefinitely. Investors require a return of 6.58 percent on the company's stock. ..

  Used in the dessert mix division

Laura Smith, the CFO of the dessert mix division, is evaluating an expansion opportunity and needs to determine the correct cost of capital for projects in her division. The cash flows of the dessert division have low total variability, but are the m..

  Current liabilities-change in net working capital

The 2014 balance sheet of Steelo, Inc., showed current assets of $2,930 and current liabilities of $1,390. The 2015 balance sheet showed current assets of $2,945 and current liabilities of $1,635. What was the company’s 2015 change in net working cap..

  Calculate the realized yield of this investment

You purchased a bond with the following characteristics: $1,000 par value 5.5% coupon Semiannual payments 18 years to maturity Bond was priced to yield 6%. For the first three years after you purchased the bond interest rates remained constant at 6%...

  What is the operating cash flow in year two

The president of Lowell Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer’s price is $60,000 and it falls into the MACRS 3-year class (33% in year 1, 45% in year 2, 15% in year 3, and 7% in year 4). The firm’s ma..

  Creating butterfly spread using call options

Suppose you are creating a butterfly spread using call options with 3 different strike prices. Currently, the call price with strike price of $40 is $21.94, the call with strike price of $50 is $11.24, and the call with strike price of $60 is $6.55. ..

  What will be our average number of boxes on hand

Our home construction company buys nails in 15-pound boxes. We use an average of 2215 boxes a year. The vendor that makes the nails can produce 33 boxes per day while our usage is 8 boxes per day. It costs $1.60 to place the typical order. Annual car..

  General electric will face in its foreign operation

Evaluate the risk that General Electric will face in its foreign operation and examine the profit opportunities for GE can arise out of these risks?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd