A control premium of 30% yields a control value of $125 per share. The resulting discount for lack of control must be:
$96.15
b.
23.08%
c.
70.00%
d.
30.00%
Price without Control = 125/1.30 = $96.15
Lack of Control Discount = (96.15 - 125)/125
Lack of Control Discount = 23.08%
A control premium of 30% yields a control value of $125 per share. The resulting discount...
If a control premium is determined to be 38.00%, the corresponding discount for lack of control is: a. 38.00% b. 100.00% c. 72.46% d. 27.54%
What is the synergy of this merger?
Suppose you decide to share 30% of the synergy to the target
shareholders, what is your initial offer?
What is the maximum price you can offer?
Acquirer Target Combined sales 400.00 100.00 500.00 Operating expenses 200.00 60.00 260.00 | Annual cost savings 20.00 EBIT 200.00 40.00 260.00 EBIT*(1-t) 120.00 24.00 156.00 Depreciation 40.00 30.00 70.00 Gross plant and equipment | 30.00 30.00 60.00 Change in working capital 10.00 5.00 15.00 Free cash flow...
The premium of a call with a strike price of $35 is $3.0 per share, and the premium of a put option with a strike price of $34 is $2.0 per share. The maximum loss per-share to the writer of the put will be __________, and the maximum gain per-share to the writer of the call will be _________. A. $33, $31.50 B. $36, $3.0 C. $32, $3.0 D. $34, $35
If $476 invested today yields $500 in one year's time, what is the discount factor? A) 1.05 B) 1.50 C) 0.95 D) 0.05 If the one-year discount factor is equal to 0.90909, the interest must be equal to: A) 9.5% B) 9.1% C) 10.0% D) 5.0%
On December 30, Seaside purchased 125 shares of treasury stock
at $10 per share.
1.Journalize the purchase of the treasury stock.
2.
Prepare the stockholders' equity section of the balance sheet
at December 31, 2018. Assume the balance in retained earnings is
unchanged from November 30.
3.
How many shares of common stock are outstanding after the
purchase of treasury stock?
Data Table Stockholders' Equity Paid-In Capital: Common Stock-$5 Par Value; 1,300 shares authorized, 130 shares issued and outstanding $...
Bill's Bakery expects earnings per share of $2.10 next year. Current book value is $3.80 per share. The appropriate discount rate for Bill's Bakery is 12 percent. Calculate the share price for Bill's Bakery if earnings grow at 2.50 percent forever. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Bill's Bakery expects earnings per share of $2.10 next year. Current book value is $3.80 per share. The appropriate discount rate for Bill's Bakery is 12 percent....
Question 4: Consider the value of company ALPHAFARM earning $10.00 in earnings per share (EPS) and currently paying $5 in dividends per share (DPS) per annum with earnings and dividends both expected to grow indefinitely at 3% per annum and discounted at 12% (i.e. a risk-free rate of 5% plus an equity risk premium of 7%). Calculate the value of APLHAFARM shares based on a dividend discount model (DDM) in perpetuity assuming constant growth rates indefinitely. (value to the nearest...
The common stock of Splish Inc. is currently selling at $125 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $65 per share. 9.80 million shares are issued and outstanding. Prepare the necessary journal entries assuming the following. (Enter amounts in dollars. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is...
21. Voltaire Corporation issued 6,000 ordinary shares of CHF5 par value for CHF 20 per share. The entry to record this transaction includes a credit to Share Premium-Ordinary for a. CHF120,000. b. CHF60,000 C. CHF30,000. d. CHF90,000
Determine whether a bond will sell at Face Value, Premium or Discount. Bond Contractual RateMarket Interest RateBond Sells at: a. 15%20% b. 15%12% c. 15%15%