User Account

All Pages

Estimate the value per share paid to bocellie

Assignment Help Financial Accounting
Reference no: EM132755313

Bocellie has a total value of $6000 million and a debt of $1500 million with 150 million shares outstanding. Chow has a total value of the firm of $42000 million, debt of $2000 million and 1600 million shares outstanding.

Problem a) If Chow intends to acquire Bocellie, what would be an appropriate exchange ratio?

Problem b) If Chow offers 1.5 of its own shares for every Bocellie share, estimate the value per share paid to Bocellie and comment on your assessment of the value of this offer?

Reference no: EM132755313

Questions Cloud

Make a statement of stockholders equity for the month : Common Stock, $50,000; Additional Paid-In Capital, $2,000,000; Make a statement of stockholders' equity for the month ended June 30
Describe the functional currency for lucky trader ltd : Describe the functional currency for Lucky Trader Ltd. The stock was shipped FOB on the 10th December 2019 when the exchange rate was $1: NAD13.00
Develop cost curves on which firm behavior : Students will develop cost curves on which firm behavior is based and will utilize these cost curves to determine the behavior of their chosen organization
Journalize the entries to record the august transactions : On November 30, Mountain Realty issued for cash 18,000 shares of preferred 1% stock, $10 par at $13. Journalize the entries to record the August transactions
Estimate the value per share paid to bocellie : Bocellie has a total value of $6000 million, Estimate the value per share paid to Bocellie and comment on your assessment of the value of this offer?
Determine the dividends per share for preferred stock : National Furniture Company has 25,000 shares of cumulative preferred 2% stock, Determine the dividends per share for preferred stock
How internal monitoring and auditing is conducted : How internal monitoring and auditing is conducted. How compliance and practice standards are implemented
Calculate the expected dividend yield for ludwig corporation : Calculate the expected dividend yield. You buy a share of The Ludwig Corporation stock for $22.70. You expect it to pay dividends of $1.10
What amount will be recorded as cash dividends : If the corporation declares a $2 per share cash dividend, what amount will be recorded as cash dividends

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute what value of company according to mm proposition

6.5 percent and its unlevered cost of capital is 14 percent. What is the value of the company according to MM Proposition with taxes?

  How much direct materials cost was incurred in producing

The ending inventory of finished goods has a total cost of $9,500 and consists of 600 units. If the overhead applied to these goods is $3,600, and the overhead rate is 80% of direct labor, how much direct materials cost was incurred in producing thes..

  Prepare a determination and distribution of excess schedule

Prepare a determination and distribution of excess schedule for the investment (a value analysis is not needed). Prepare all the eliminations and adjustments that would be made on the 20X1 consolidated worksheet.

  Estimation of adjusted contract price

Given base index and index at delivery, estimation of adjusted contract price.

  Fixed asset investment

five-year project has an initial fixed asset investment of $345,000, an initial NWC investment of $37,000, and an annual OCF of -$36,000. The fixed asset is fully depreciated over the life of the project and has no salvage value

  Why would managers prefer short-term cash over long-term

Why would managers prefer short-term cash over long-term equity bonuses? Why does this not align with shareholder interests? Explain your answer.

  What gain or loss would be recognized on the called bonds

Straight-line amortization is used for discounts and premiums. On September 1, 2014, $1,800,000 of the bonds are called at 102 plus accrued interest. What gain or loss would be recognized on the called bonds on September 1, 2014?

  Compute the overall break-even point for the company

Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total Sales $ 110,000 $ 55,000 $ 165,000 Variable expenses 34,000 7,..

  Identify what would be the effect

If the petty cash fund was not reimbursed at the time the financial statements were prepared. please identify what would be the effect.

  What is the investment property depreciated cost

How much is the fair value gain or loss on investment property at the year end? what is the investment property depreciated cost?

  Determine amount of morley itemized deduction

During the year, Morley, a single taxpayer, had an AGI of $30,000 before considering the following items: Determine amount of Morley itemized deduction

  Yield and frequency

Consider a 5 year bond with face value of 100 and price of 101 that has a coupon of 6% . What is the yield of this bond if the coupon is paid?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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