Companies A and B have decided to merge. B will absorb A. The following are financial...
Companies A and B have decided to merge. B will absorb A. The following are financial data of the two companies:
| Company A | Company B | |
| assets | 7.000.000$ | 3.300.000$ |
| liabilities | 2.500.000$ | 1.750.000$ |
| clean seat | 4.500.000$ | 1.550.000$ |
| number of shares | 220.000 | 45.000 |
| nominal value of shares | 15$ | 9$ |
A. Calculate the exchange ratio of the above merger.
B. Will there be an increase in share capital? If so, calculate the
amount.
C. How much money will be paid and why?
The exercise does not give exchange terms.
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Companies A and B have decided to merge. B will absorb A. The
following are financial...
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extended period of negotiation, the two companies agreed to merge.
To effect the merger, Petrello Company is to exchange its unissued
common stock for all the outstanding shares of Sanchez Company in
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The balance sheets of Petrello Company and Sanchez Company as of
January 1, 2014, are presented below. On that date, after an
extended period of negotiation, the two companies agreed to merge.
To effect the merger, Petrello Company is to exchange its unissued
common stock for all the outstanding shares of Sanchez Company in
the ratio of 1/2 share of Petrello for each share of Sanchez.
Market values of the shares were agreed on as Petrello, $50;
Sanchez,...
Assume that you are purchasing an investment and have decided to
invest in a company in the digital phone business. You have
narrowed the choice to Best Digital Corp. and Zone Network, Inc.
and have assembled the following data.
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