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
If all courses were regular (not honors or AP) 1 credit classes, calculate the student's GPA based on the following grades:
12345 [234]

2.56 is the calculate of the student GPA

7 0
3 years ago
What are debit memoranda?
Kazeer [188]

Answer:

I believe the answer is reductions

Explanation:

The adjustments made to the account reduce the funds in the account but are made for specific purposes and used only for adjustments outside of any normal debits.

7 0
3 years ago
Joe, a human resources specialist for Jersey Office Supplies Co., rides along with the furniture delivery people to observe the
Svetllana [295]

Complete question:

Joe, a human resources specialist for Jersey Office Supplies Co., rides along with the furniture delivery people to observe the problems they were encountering and what activities they were required to perform. Joe was performing a:

A. personality test

B. performance appraisal

C. BARS

D. job analysis

Answer:

Joe was performing a job analysis

Explanation:

Job analyzes are a set of protocols for defining the contents for the job and the features or criteria required for the execution of the tasks. Job analytics provide employers with knowledge that helps to recognize which personnel is ideally suited to particular work.

An example of a job analysis model might list tasks or activities of the job and determine each performance level. Within this way, the role of job analysis is critical. Many companies typically take the same generic approach without details on the task description. All workers are tested in a similar set of features or characteristics presuming that they are required for all work.

6 0
3 years ago
Former GVO marketing director, David Lieberman, tells a story about a new product idea proposed by a creative person. The idea w
Sati [7]

Answer:

The correct answer is C) behavioral barrier.

Explanation:

Organizational barriers can be any number of things that range from physical elements to individual and group attitudes. They don't have to be important elements. They can be as simple as an extended absence of employees or as important as the acquisition of an organization by a foreign government. They can even be perceptions that have no basis in reality. The key to identifying barriers and eliminating their constrictive effect is to carefully identify all aspects of them.

4 0
3 years ago
The common stock of Jensen Shipping has an expected return of 16.2 percent. The return on the market is 11.2 percent, the inflat
tankabanditka [31]

Answer: 1.66

Explanation:

Based on the information given in the question, the beta of the stock will be calculated as follows:

Expected return = 16.2%

Market return = 11.2%

Inflation rate = 3.1%

Risk-free rate of return = 3.6%

We should note that:

Expected return = risk-free rate + Beta × (market rate- risk-free rate)

Therefore,

16.2% = 3.6% + Beta × (11.2% - 3.6%)

16.2% = 3.6% + Beta × 7.6%

16.2% - 3.6% = Beta × 7.6%

12.6% = Beta × 7.6%

Beta = 12.6% / 7.6%

Beta = 1.66

4 0
3 years ago
Other questions:
  • ABC Company has a cash balance of $9,000 on April 1. The company must maintain a minimum cash balance of $6,000. During April ex
    10·1 answer
  • Which of the following exams helps you get into the US army?
    11·2 answers
  • Suppose the 2017 adidas financial statements contain the following selected data (in millions).
    5·1 answer
  • Suppose a firm hires both labor (L) and capital (C) under purely competitive conditions. The price of labor is PL, and that of c
    13·1 answer
  • Shelby's new job with the federal government provides a comfortable income and a fairly stable income. she would like to buy a n
    6·1 answer
  • "Native advertising refers to" promotion that looks like content. minimalist promotion relying on few graphics. content that loo
    15·1 answer
  • Because of his business's recent success, Sam has decided to expand his Sam's Swimming Pool Cleaning to include another branch.
    13·2 answers
  • The marketing manager for an automobile manufacturer is interested in determining the proportion of new compact-car owners who w
    13·1 answer
  • Why is developing a reputation as a subject matter expert important for a leader if leadership deals so heavily with interperson
    11·1 answer
  • Why should a person care about his or her credit report?
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!