What is the net present value of acquiring alto to solo

Assignment Help Finance Basics
Reference no: EM13273348

Alto and Solo are all-equity firms. Alto has 2,400 shares outstanding at a market price of $24 a share. Solo has 4,000 shares outstanding at a price of $17 a share. Solo is acquiring Alto for $63,000 in cash. The incremental value of theacquisition is $5,500. What is the net present value of acquiring Alto to Solo?

Reference no: EM13273348

Questions Cloud

What is the value of one call option on winsson stock : The common stock of Winsson, Inc. is currently priced at $52.50 a share. One year from now, the stock price is expected to be either $54 or $60 a share. The risk-free rate of return is 4%. What is the value of one call option on Winsson stock with..
What will the ending retained earnings account be : Projected income is $150,000 and 40% of this amount will be paid out immediately as dividends. What will the ending retained earnings account be?
Find the velocity of center of mass of car-truck system : A 1382-kg car is moving westward with a speed of 21.1 m/s, Find the velocity of the center of mass of the car-truck system
Explain mixture of equal numbers of moles of n2 and co2 : What is the density (in g/L) of a mixture of equal numbers of moles of N2 and CO2 gas in a 8.00 L container at 298K if the pressure exerted is 19.0 atm
What is the net present value of acquiring alto to solo : The incremental value of theacquisition is $5,500. What is the net present value of acquiring Alto to Solo?
What is the value per share of the merged firm : Firm B has 1,800 shares outstanding at a price of $15 a share. What is the value per share of the merged firm?
Compute the doping density of phosphorous : Boron is to be converted into N-type by Phosphorous dopant, so that the resistivity at T = 100 C is 1.2 ohm-cm. all atom are fully ionized. calculate the doping density of Phosphorous and the resistivity of the sample at room temperature
What is the cost of equity if tip-top was unlevered : The Tip-Top Paving Co. has an equity cost of capital of 16.97%. The debt to value ratio is .6, the tax rate is 34%, and the cost of debt is 11%. What is the cost of equity if Tip-Top was unlevered?
Determine he speed of the scattered electron : In a Compton collision, if the wavelength of the photon is 1.00 pm and its deflected angle is 60.0°

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of present value of medical research corporation

Computation of Present value of Medical Research Corporation (MRC) was thrilled with the response he had received from drug companies for his latest discovery, a unique electronic stimulator that reduces the pain from arthritis

  What is the portfolios expected return

If she invests 30% of her funds in Hidalgo's and 70% in Atrium, and if the correlation of returns between these securities is +0.65, what is the portfolio's expected return and standard deviation?

  What is the quantitative measure of a projects risk

What is the quantitative measure of a project's risk? What is it called? How is this related to the line in Exhibit 4.6? And what is this line called?

  Determine the share price and corporate tax rates

Corporation A and B are two identical corporation with equal asset values of $50 million. Corporation A is financed by equity only and has 100,000 shares outstanding.

  What must the coupon rate be on mertons bonds

Merton Enterprises has bonds on the market making annual payments, with 16 years to maturity, and selling for $968. At this price, the bonds yield 8 percent.

  Time value of money-internal rate of return

You're given a business opportunity to spend $12000 in Joe's Bakehouse. He offers to pay you $6000 in two year's time and then $11000 in 4 years' time. Find out the internal rate of return without using Excel.

  Estimate the required rate of return

Determine the relationship between the price of a financial asset and the return that investors require on that asset, holding other factors constant?

  What is the bonds coupon rate

Buttercup Inc. just issued $1,000 par 30-year bonds. Each bond was sold for $1,107.20 and pay interest semiannually. Investors require a rate of 7.75% on the bonds. What is the bonds' coupon rate?

  Carrying out cost benefit analysis on project

Carry out a cost benefit analysis on this proposed project over a four year period giving a recommendation and numerical explanation for your recommendation.

  How is market risk measured for individual securities

How is market risk measured for individual securities AND how is it calculated?

  Discuss basic features of mutual funds

Discuss and explain the basic features of mutual funds, and note what they have to offer as in-vestment vehicles.

  Calculate basic earnings per share.

Hughes Technology has had net income of $450,000 in current fiscal year. there are 100,000 shares of common stock outstanding with convertible bonds, Determine Hughes's basic earnings per share.

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