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QUESTION#3 Company A is looking to acquire Company B through a combination of cash and shares....
The company issues 2,500 options that can be exchanged for ordinary shares. The fair price of...
The company issues 2,500 options that can be exchanged for ordinary shares. The fair price of shares is Rp1,000 per share and the exercise price of these options is Rp800 per share. In the diluted LPS calculation, the addition of the number of ordinary shares outstanding as a result of the option is ... A. 500 B. 1000 C. 1500 D. 2500
Sheridan Company had 808000 shares of common stock outstanding at December 31, 2018. In addition, it...
Sheridan Company had 808000 shares of common stock outstanding
at December 31, 2018. In addition, it had 159000 stock options
outstanding, which had been granted to certain executives, and
which gave them the right to purchase shares of Sheridan's stock at
an option price of $37 per share. The average market price of
Sheridan's common stock for 2018 was $50. What is the number of
shares that should be used in computing diluted earnings per share
for the year ended...
On January 1, 2017 Subic Company issued shares of its P5 par value stock to acquire...
On January 1, 2017 Subic Company issued shares of its P5 par value stock to acquire of Financial Position for Subic Company and Statement of Financial Position for the all the shares of Clark Inc. which was liquidated immediately thereafter. The Statement Problem 13-10 combined company under the purchase method are presented below: Combined Company Subic Company Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Goodwill Total Assets P 70,000 130,000 100,000 100,000 400,000 ( 150,000) P100,000...
Alternative 1 Acquire Shaan by paying $15 cash per share for Shaan’s stock. Alternative 2 Acquire...
Alternative 1
Acquire Shaan by paying $15 cash per share for Shaan’s
stock.
Alternative 2
Acquire Shaan by share exchange ratio of l:4 (i.e. one share of
Nadia for 4 shares of Shaan).
Which of the above two alternatives Should Nadia choose? Support
your answer with calculations.
At what exchange ratio of Nadia's shares to Shaan's shares would
the shareholders of Shaan be indifferent between Nadia's cash or
stock offer for their stock? Show calculations to support your
answer.
Suppose...
As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies inc's 540,000 shares for...
As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies inc's 540,000 shares for $620,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal. During the year, AMC earned net income of $390,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $659,000. Required: 1. Assume no significant influence was acquired. Prepare...
EPS practice calculations (Show all calculations.) 1. Net income = $100,000 Preferred stock, 1,000 shares of...
EPS practice calculations (Show all calculations.) 1. Net income = $100,000 Preferred stock, 1,000 shares of $100 par value, 6% cumulative, nonconvertible Bonds 100, S1,000, 5% bonds each convertible to 50 shares of stock. Weighted average shares of common stock outstanding is 75,000 shares. Tax rate 21% Basic EPS- Diluted EPS - 2. Assume the same facts as above but, in addition, this company has 1,000 stock options that allow the holder to purchase a share of stock for an...
Copper Pipes Incorporated (CPI) is planning to acquire Base Copper Mines (BCM). Currently, BCM has 8000...
Copper Pipes Incorporated (CPI) is planning to acquire Base Copper Mines (BCM). Currently, BCM has 8000 shares trading at $32.50 per share. CPI estimates the transaction costs of the acquisition are $15,000 and the required return on BCM's assets is 10%. Acquiring BCM will generate over the next 20 years incremental cash flows as follows: Source Revenues Costs Amount of Change Increase $20,500 Increase $11000 Source Taxes Amount of Change Decrease $5000 Increase $3500 a. What are the incremental cash...
Firm A can acquire firm B for $78,750 in cash or with stock worth $78,750 priced...
Firm A can acquire firm B for $78,750 in cash or with stock worth $78,750 priced at its current price of $25 per share of stock. The synergy value of the deal is $15,000. Both firms are 100% equity financed. Firm A: Number of Shares - 10,000; Price per Share - $25.00 Firm B: Number of Shares - 10,000; Price per Share - $10.00 a) How many shares of A, at their current price, will be given to firm B's...
corporate finance kindly show manual calculations. Question Greer Company has plans to acquire Holt Company by...
corporate finance
kindly show manual calculations.
Question Greer Company has plans to acquire Holt Company by exchanging stock. Greer will Issue 1.5 Shares of its stock for each na Share of Holt financial Information for the two companies is as follows; and Greer Holt root Net Income $400, ao $100, AD Shares outstanding 200,000 25,000 Earnings per Share on $2.00 $4.00 Market price of stuck $40.00 $48-00 Greer expects the ple Ratio for the combined Campany to be is. Required...
XYZ Company had 200,000 shares of common stock outstanding on December 31, 2017. On July 1, 2018, XYZ issued an additional 45,000 shares for cash. On January 1, 2018, XYZ issued 15,000 shares of conv...
XYZ Company had 200,000 shares of common stock outstanding on December 31, 2017. On July 1, 2018, XYZ issued an additional 45,000 shares for cash. On January 1, 2018, XYZ issued 15,000 shares of convertible preferred stock. The preferred stock had a par value of $100 per share and paid a 5% dividend. Each share of preferred stock is convertible into 8 shares of common. During 2018 XYZ paid the regular annual dividend on the preferred and common stock. Net...
Sheridan Company had 808000 shares of common stock outstanding
at December 31, 2018. In addition, it had 159000 stock options
outstanding, which had been granted to certain executives, and
which gave them the right to purchase shares of Sheridan's stock at
an option price of $37 per share. The average market price of
Sheridan's common stock for 2018 was $50. What is the number of
shares that should be used in computing diluted earnings per share
for the year ended...
On January 1, 2017 Subic Company issued shares of its P5 par value stock to acquire of Financial Position for Subic Company and Statement of Financial Position for the all the shares of Clark Inc. which was liquidated immediately thereafter. The Statement Problem 13-10 combined company under the purchase method are presented below: Combined Company Subic Company Cash Accounts Receivable Inventory Land Buildings and Equipment Less: Accumulated Depreciation Goodwill Total Assets P 70,000 130,000 100,000 100,000 400,000 ( 150,000) P100,000...
Alternative 1
Acquire Shaan by paying $15 cash per share for Shaan’s
stock.
Alternative 2
Acquire Shaan by share exchange ratio of l:4 (i.e. one share of
Nadia for 4 shares of Shaan).
Which of the above two alternatives Should Nadia choose? Support
your answer with calculations.
At what exchange ratio of Nadia's shares to Shaan's shares would
the shareholders of Shaan be indifferent between Nadia's cash or
stock offer for their stock? Show calculations to support your
answer.
Suppose...
As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies inc's 540,000 shares for $620,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal. During the year, AMC earned net income of $390,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $659,000. Required: 1. Assume no significant influence was acquired. Prepare...
EPS practice calculations (Show all calculations.) 1. Net income = $100,000 Preferred stock, 1,000 shares of $100 par value, 6% cumulative, nonconvertible Bonds 100, S1,000, 5% bonds each convertible to 50 shares of stock. Weighted average shares of common stock outstanding is 75,000 shares. Tax rate 21% Basic EPS- Diluted EPS - 2. Assume the same facts as above but, in addition, this company has 1,000 stock options that allow the holder to purchase a share of stock for an...
Copper Pipes Incorporated (CPI) is planning to acquire Base Copper Mines (BCM). Currently, BCM has 8000 shares trading at $32.50 per share. CPI estimates the transaction costs of the acquisition are $15,000 and the required return on BCM's assets is 10%. Acquiring BCM will generate over the next 20 years incremental cash flows as follows: Source Revenues Costs Amount of Change Increase $20,500 Increase $11000 Source Taxes Amount of Change Decrease $5000 Increase $3500 a. What are the incremental cash...
Firm A can acquire firm B for $78,750 in cash or with stock worth $78,750 priced at its current price of $25 per share of stock. The synergy value of the deal is $15,000. Both firms are 100% equity financed. Firm A: Number of Shares - 10,000; Price per Share - $25.00 Firm B: Number of Shares - 10,000; Price per Share - $10.00 a) How many shares of A, at their current price, will be given to firm B's...
corporate finance
kindly show manual calculations.
Question Greer Company has plans to acquire Holt Company by exchanging stock. Greer will Issue 1.5 Shares of its stock for each na Share of Holt financial Information for the two companies is as follows; and Greer Holt root Net Income $400, ao $100, AD Shares outstanding 200,000 25,000 Earnings per Share on $2.00 $4.00 Market price of stuck $40.00 $48-00 Greer expects the ple Ratio for the combined Campany to be is. Required...
XYZ Company had 200,000 shares of common stock outstanding on December 31, 2017. On July 1, 2018, XYZ issued an additional 45,000 shares for cash. On January 1, 2018, XYZ issued 15,000 shares of convertible preferred stock. The preferred stock had a par value of $100 per share and paid a 5% dividend. Each share of preferred stock is convertible into 8 shares of common. During 2018 XYZ paid the regular annual dividend on the preferred and common stock. Net...
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