a.) Cost = 3.1*18.7 = 57.97 million
b.) value = 12.40 + 8.3 + 20 + 3.1*1.3*17 = 109.21
c.) percentage return = (109.21/57.97) -1 = 88.37%
The management of Mitchell Labs decided to go private in 2002 by buying all 3.10 million...
The management of Mitchell Labs decided to go private in 2002 by buying all 2.40 million of its outstanding shares at $17.60 per share. By 2006, management had restructured the company by selling off the petroleum research division for $13.40 million, the fiber technology division for $8.30 million, and the synthetic products division for $24 million. Because these divisions had been only marginally profitable, Mitchell Labs is a stronger company after the restructuring. Mitchell is now able to concentrate exclusively...
4.00 points The management of Mitchel Labs decided to go private in fem and indicated that if it reentered the public market, the 3 30 milion shares t a. What was the invitial cost to Mitchell Labs to go private? (Do not round Intermediate caleulations Round y shares at $24 50 per share. By 2006, management had restructured the company by your answer to 2 decimal places. Enter your answer in milions, not dolars (e g $1,230,000 not round Intermediate...
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Stock Repurchase Bayani Bakery's most recent FCF was $49 million; the FCF is expected to grow at a constant rate of 6%. The firm's WACC is 14%, and it has 15 million shares of common stock outstanding. The firm has $30 million in short-term investments, which it plans to liquidate and distribute to common shareholders via a stock repurchase; the firm has no other nonoperating assets. It has $365 million in debt and $57 million in preferred stock. a. What...
A firm has 10 million shares outstanding with a market price of $35 per share. The firm has $35 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What is the firm's value of operations after the repurchase? Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places....
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A sporting goods manufacturer has decided to expand into a related business. Management estimates that to build and staff a facility of the desired size and to attain capacity operations would cost $960 million in present value terms. Alternatively, the company could acquire an existing firm or division with the desired capacity. One such opportunity is a division of another company. The book value of the division’s assets is $850 million and its earnings before interest and tax are presently...
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Folic Acid Inc. has $20 million in earnings, pays $3 million in interest to bondholders, and $2 million in dividends to preferred stockholders. What are the common stockholders' residual claims to earnings? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places (e.g., $1.23 million should be entered as "1.23").) Residual claims to earnings million
Teardrop, Inc., wishes to expand its facilities. The company currently has 12 million shares outstanding and no debt. The stock sells for $30 per share, but the book value per share is $42. Net income for Teardrop is currently $4.3 million. The new facility will cost $45 million, and it will increase net income by $500,000. The par value of the stock is $1 per share. Assume a constant price-earnings ratio. a-1. Calculate the new book value per share. Assume...