Business in industry in which it currently does not operate

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Why company choose to merge with or acquire another company to expend its business in an industry in which it currently does not operate? Please write two paragraphs.

Reference no: EM131350576

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What is the company total book value-market value : Jiminy’s Cricket Farm issued a bond with 20 years to maturity and a semiannual coupon rate of 8 percent 3 years ago. The bond currently sells for 96 percent of its face value. The company’s tax rate is 35 percent. The book value of the debt issue is ..
Valued at for purposes of the capital budgeting analysis : Your company purchased a piece of land five years ago for $150,000 and subsequently added $175,000 in improvements. The current book value of the property is $225,000. In consideration of the factory project, what amount (if any) should the land be v..
Offer does not affect carry-alls other planned operations : Carry- all plans to sell 1300 carriers next year and has budgeted sales of $46,000 and profits of $22,000. variable cost are projected to be $20 per unit. micheal company offers to pay $20,800 to buy 600 units from carry-all. total fixed cost are 700..
What is the market risk premium : The market has an expected rate of return of 11.2 percent. The long-term government bond is expected to yield 5.8 percent and the U.S. Treasury bill is expected to yield 3.9 percent. The inflation rate is 3.6 percent. What is the market risk premium?
Business in industry in which it currently does not operate : Why company choose to merge with or acquire another company to expend its business in an industry in which it currently does not operate?
What is duration if the yield to maturity : Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 6.7%. What is the duration if the yield to maturity is 10.7%?
What will be an investor taxable income from the bond : A newly issued 10-year maturity, 4% coupon bond making annual coupon payments is sold to the public at a price of $780. The bond will not be sold at the end of the year. The bond is treated as an original-issue discount bond. Calculate the constant y..
Using put-call parity and a call premium : Using put-call parity and a call premium of $13.70, please find the value of the put option on the stock given with a strike price of ($95) and a time to expiration of (3-month).
More relevant the pretax or the aftertax cost of debt : Jiminy’s Cricket Farm issued a bond with 20 years to maturity and a semiannual coupon rate of 10 percent 2 years ago. The bond currently sells for 93 percent of its face value. The company’s tax rate is 35 percent. What is the pretax cost of debt? Wh..

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