What is the price per share of firm after the acquisition

Assignment Help Financial Management
Reference no: EM13941473

Firm A is acquiring Firm B for $25,000 in cash. Firm A has 3,000 shares of stock outstanding at a market value of $21 a share. Firm B has 1,200 shares of stock outstanding at a market price of $17 a share. Neither firm has any debt. The net present value of the acquisition is $1,500. What is the price per share of Firm A after the acquisition?

Reference no: EM13941473

Questions Cloud

Evaluate marketing opportunity options : Evaluate marketing opportunity options that address organisational objectives, and evaluate their risks and returns in the selection process.
Would malcolm x life had directedness, multiple direction : Would you say that Malcolm X's life had a directedness, multiple direction, or lack of direction? Briefly describe his experiences with and relationship to white people during the course of his life.
Considering purchase of machine for production of latex : Vandelay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $3,054,000 and will last for six years. Variable costs are 35 percent of sales, and fixed costs are $200,000 per year. Calculate the EAC for..
Write client code to call the print method of counter. : Write client code to deposit 7 quarters, 3 dimes, 10 nickels, and 17 pennies in counter. Output the new status of counter using the toString method.
What is the price per share of firm after the acquisition : Firm A is acquiring Firm B for $25,000 in cash. Firm A has 3,000 shares of stock outstanding at a market value of $21 a share. Firm B has 1,200 shares of stock outstanding at a market price of $17 a share. Neither firm has any debt. The net present v..
A loan is to be repaid in level instalments payable : A loan is to be repaid in level instalments payable at the end of each year for 7 years. The effective annual interest rate on the loan is 4%. After the 4th payment the principal remaining is $5000. Find the amount of the loan.
What is the overall completion percentage for wip : What is the overall completion percentage for WIP as to direct materials at the end of the period?
Differentiate peacemaking and deontological philosophy : Obviously, both of these cases fell under the Capital Murder statutes of both states. Differentiate the peacemaking philosophy and deontological philosophy in the context of capital murder sentencing for juveniles?
Uses titanium in the production of its specialty drivers : BCC Golf Co. uses titanium in the production of its specialty drivers. BCC anticipates that it will need to purchase 200 ounces of titanium in November 2014, for clubs that will be shipped in the spring and summer of 2015. However, if the price of ti..

Reviews

Write a Review

Financial Management Questions & Answers

  Yield to call and realized rates of return

Seven years ago, Goodwynn & Wolf Incorporated sold a 20-year bond issue with a 14% annual coupon rate and a 9% call premium. Today, G&W called the bonds. The bonds originally were sold at their face value of $1,000. Compute the realized rate of retur..

  What is its cash coverage ratio

Cash Coverage, Inc. had net sales of $300,000 last year, and increased its retained earnings by $10,000 for the year after paying a dividend of $2 per share on 10,000 outstanding shares. The tax rate for the company is 40%. The company had cost of go..

  Long-term financing needed

At year-end 2013, Wallace Landscaping’s total assets were $1.5 million and its accounts payable were $380,000. Sales, which in 2013 were $2.4 million, are expected to increase by 15% in 2014. Total assets and accounts payable are proportional to sale..

  Receives the limited liability of a corporation

A business organization that receives the limited liability of a corporation but is taxed as a proprietorship or partnership is called a:

  Capital gains yield-share based on a market rate of return

The Toy Chest pays an annual dividend of $4.80 per share and sells for $93.20 a share based on a market rate of return of 15 percent. What is the capital gains yield?

  Market is in equilibrium with the required return

Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $1.00 coming 3 years from today. what is..

  What is the firm interest coverage ratio

A firm has a profit margin of 15% on sales of $20,000,000. If the firm has total assets of $25,000,000, a total debt-equity ratio of 25% and its stock is selling at $36. The total asset turnover ratio 80%? What is the ROE? Then suppose the firm has t..

  What is the value of your equal withdrawals

You have $430,000 in your retirement account, If you plan to retire immediately and decide to invest in an equity which pays 6% interest for future use. What is the value of your equal withdrawals for the next 30 years.

  What is the biggest gap between theory

What is the biggest gap between theory and applications when estimating WACC? And in your opinion, what are the key reasons to form such a big gap?

  What are financial markets

What are financial markets. why do they exist

  What is the dollar amount of costly trade credit the firm

Taylor Textbooks Inc. buys on terms of 1/12, net 59 days. It does not take discounts, and it typically pays on time, 59 days after the invoice date. Net purchases amount to $550,000 per year. On average, what is the dollar amount of costly trade cred..

  According to the capital asset pricing model

Security X has an expected rate of return of 17% and a beta of 1.65. The risk-free rate is 4% and the market expected rate of return is 13%. According to the capital asset pricing model, security X has an expected return of ______________%. It is fai..

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