1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
g100num [7]
3 years ago
8

TJ's and Corner Grocery are all-equity firms. TJ's has 2,500 shares outstanding at a market price of $16.70 a share. Corner Groc

ery has 3,000 shares outstanding at a price of $22.50 a share. Corner Grocery is acquiring TJ's for $45,000 in cash. What is the merger premium per share?
Business
1 answer:
valentina_108 [34]3 years ago
4 0

Answer:

$1.3 per share

Explanation:

Data provided in the question:

Number of shares outstanding of TJ = 2,500

Market price = $16.70

Number of shares outstanding of Corner Grocery = 3,000

Price per share of Corner Grocery = $22.50

Cost of acquiring TJ's share = $45,000

Now,

Merger Premium per share = [ Cost of acquiring TJ's share - Market price of TJ's shares ] ÷ Number shares TJ's outstanding

= [ $45,000 - ( $16.70 × 2,500)] ÷ 2,500

=  [ $45,000 - $41,750 ] ÷ 2,500

= $3,250 ÷ 2,500

= $1.3 per share

You might be interested in
The statement of cash flows shows a firm's revenues, costs of goods sold, expenses, and net income. True or false
yawa3891 [41]

Answer:

false

Explanation:

A statement of cash flows on tracks Cash, not credit, expenses, or any of that jazz. There are other financial reports to account for them.

6 0
2 years ago
Read 2 more answers
By what authority was the creation and existence of a u. S. National bank deemed legitimate?.
erastovalidia [21]
Congress

Please rate my answer

I gave you my rated time for your question
5 0
2 years ago
The aggregate demand curve is downward sloping because production costs decline as real GDP increases. is upward sloping because
egoroff_w [7]

Answer: shows the amount of real GDP that will be demanded at each possible price level.

Explanation:

The Aggregate Demand curve shows how much of real GDP is demanded at each possible price level which means that is shows the effect of the price level on real GDP.

If the price level rises, real GDP will decrease and if the price level falls, real GDP rises. This is why the aggregate demand curve is downward sloping, to reflect this inverse relationship between real GDP and price level.

7 0
3 years ago
Thomas co. sold $1,000 worth of merchandise on a bank credit card less a 3ee. the entry to record the sales transaction would in
DedPeter [7]

The amount of the sales transaction would include a debit to cash is $970.

<h3>How is the percentage determined?</h3>
  • The percentage is a value that has been multiplied by 100. In this manner, expressing 25% of a value is equivalent to expressing 25% out of 100, or 25% divided by 100.
  • Simply multiply the total by the percentage to determine the precise number of absentees from the event.

So: 160 x 25% = 160 (25/100) = 160 x 0.25 = 40

This is so that the cash sum received will be equal to the sales values multiplied by one less the credit card fee.

1000 x (1-0,03)

1000 x 0,97 = 970$

So, the amount of debt to cash that would entry to the record sales would be 970$.

To learn more about Finance sum, refer

to brainly.com/question/26106218

#SPJ4

4 0
2 years ago
The number of employees in a company is reduced in the ratio 3 : 2 and the salary of each employee is increased in the ratio 4 :
Doss [256]

Answer:

The initial expenditure of the company on salary is Rs. 72.000

Explanation:

First we need to express the employees ratio in letter

3A=B

2C=D

A and C being the amount of employees

B the salary before, D the salary after

They say the salary after is the slary before minus Rs. 12.000

we can express this as D=B-12.000

We know to that the salary of each employee increased 4 to 5

Then C=(5/4)A or A=(4/5)C

We can have the following equation

2((5/4)A)=B-12.000

A=(2/5)(B-12.000)

we use this in the first expression

3(2/5)(B-12.000)=B

1,2B-14400=B

0,2B=14400

B=72.000

6 0
3 years ago
Other questions:
  • Trisha and Josh recently adopted a child, Julie. Before the adoption, Trisha, Josh, and Julie's biological parents worked out an
    11·1 answer
  • What is the maximum pre-tax deduction amount for a dependent-care flex account?
    9·1 answer
  • emphasize designing and managing organizations on an impersonal, rational basis through such elements as clearly defined authori
    9·1 answer
  • Why is the demand for professional labor generally high relative to the supply compared to the demand for unskilled or semi skil
    7·2 answers
  • Which of the following is true about organizational culture? The strength of an organization's culture refers to how widely and
    14·1 answer
  • Vicki is an independent insurance agent who has seen little increase in her revenues over the last two years. Her main marketing
    10·1 answer
  • As a New York businessperson who does a lot of flying, you are keenly aware of even small changes in airfare from New York to Ch
    15·1 answer
  • Harry Rawlings wants to withdraw $10,000 (including principal) from an investment fund at the end of each year for 5 years. How
    6·1 answer
  • A company's planned activity level for next year is expected to be 100,000 machine hours.At this level of activity, the company
    15·1 answer
  • Which of the 4 P's focuses on communicating the value proposition?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!