Tender your shares to microsoft and deal is completed

Assignment Help Financial Management
Reference no: EM13883410

You own shares in Yahoo that were purchased at a price of $21 per share. Microsoft has offered to purchase Yahoo and buy your shares at a price of $31 per share. What will be your return if you tender your shares to Microsoft and the deal is completed?

A) 47.62%

B) 33.45%

C) 49.65%

D) 43.34%

Reference no: EM13883410

Questions Cloud

The electronic communications privacy act : The Electronic Communications Privacy Act
What is the goal or objective of the article : The article - Chronic Arsenic Exposure and Blood Glutathione and Glutathione Disulfide Concentrations in Bangladeshi Adults
Estimate the density of man : A  human being  (75  kg ) consumes about  6000 Kj   of food    per day. Assume  that the food   is all glucose   and  that  overall reaction   is- C6H12O6  +6O2 ------à 6CO2 +6H20  , Δ H= -2816 KJ
What is the competitive strategy that they follow : Is this a global company? Which global operations strategy does it follow? What is the competitive strategy that they follow? How are they achieving this competitive advantage
Tender your shares to microsoft and deal is completed : You own shares in Yahoo that were purchased at a price of $21 per share. Microsoft has offered to purchase Yahoo and buy your shares at a price of $31 per share. What will be your return if you tender your shares to Microsoft and the deal is complete..
Use several alternative discount rate values : Use several alternative discount rate values (1% to 10%) to investigate the sensitivity of the present value of net benefits of the dam in exercise (1) to the assumed value of the real discount rate. Determine the "breakeven" value of the discount ra..
Invested at ten percent compounded annually : What will $5,000 invested for 10 years at 8 percent compounded annually grow to? How many years will it take $400 to grow to $1,671 if it is invested at 10 percent compounded annually? At what rate would $1,000 have to be invested to grow to $4,046 i..
What is your point of view on bt corn : Write an essay on this topic of 500-750 words (2-3 pages, double spaced APA format). Present the concepts in your own words, and include current information.
Dividends are expected to remain at this level indefinitely : Harry Trading Company must choose its optimal capital structure. Currently, the firm has a 20 percent debt ratio and the firm expects to generate a dividend next year of $5.44 per share. Dividends are expected to remain at this level indefinitely.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate payback period and internal rate of return (irr)

Company has an opportunity to make an investment with the estimated after tax cash flows

  What is effective rate of yields

Martin Software has 8.4 percent coupon bonds on the market with 20 years to maturity. The bonds make semi-annual payments and currently sell for 107.0 percent of par. What is the current yield on the bonds? What is the YTM? What is effective rate of ..

  Homeowners insurance policy for the condominium

Frank made some inquiries and found a lender that has pre-approved him for a $125,000, 30-year mortgage @ 5% interest, with 10 percent down. A condominium in a nearby town, listed for $120,000.00, is 10 miles closer to his job, and is located in a ni..

  Investments required in order to positive operating ratio

An insurance company’s projected loss ratio is 79 percent, and its loss adjustment expense ratio is 13.3 percent. It estimates that commission payments and dividends to policyholders will add another 17 percent. What is the minimum yield on investmen..

  Compare and contrast online brokerage to dips and drips

Search the Web for three companies (look for investor information) that offer DIPs or DRIPs and compare and contrast the requirements, including minimum investments, nature of the return, costs, and other features.

  Before-tax operating costs problem

Firm S is considering adding a robotic device to its production line. The device base price is $1,038,000.00, and it would cost another $21,500.00 to install it. The machine falls into the MACRS 3-year class (the applicable MACRS depreciation rates a..

  Anagerial accounting-finance is use of cost benefit analysis

A key technique in managerial accounting/finance is the use of “Cost Benefit Analysis” to help management make better business decisions. Define this approach in your own words and discuss 1-2 applications of this concept in the Acquisition/Contracti..

  Try to determine the required rate of return

Try to determine the required rate of return on Tilden Woods Corporation’s common stock. The firm’s beta is 1.62. The rate on a 10-year Treasury bond is 3.56 percent, and the market risk premium is 8.17 percent.

  Question 1the current yield on a 5000 8 percent coupon bond

question 1the current yield on a 5000 8 percent coupon bond selling for 4000 is5.8.10.20.none of the above.question

  Compute the cost of capital for the firm

Compute the cost of capital for the firm for the following: A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 10.5 percent. Interest payments are $52.50 and are paid semiannually. The bonds have a current marke..

  Other transaction costs or finance charges

Mike Bayles has just arranged to purchase a $460,000 vacation home in the Bahamas with a 25 percent down payment. The mortgage has a 5.2 percent stated annual interest rate, compounded monthly, and calls for equal monthly payments over the next 30 ye..

  Calculate for each bond the percentage price change

A zero-coupon bond with 2.5 years to maturity has a yield to maturity of 25% per annum. A 3-year maturity annual-pay coupon bond has a face value of $1000 and a 25% coupon rate. The coupon bond also has a yield to maturity of 25%. Does the longer mat..

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