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lyudmila [28]
3 years ago
7

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:
alexandr402 [8]3 years ago
8 0

Answer:

$1.30

Explanation:

The valuation of TJ's = price per share * number of shares in issue

= $16.70 * 2,500 shares = $41,750.

Corner Grocery offer for TJ's of $45,000, and obviously a premium over the market value of TJ's at $41,750.

The price per share of Corner Grocery's offer = \frac{45,000}{2,500} = $18 per share.

That is, offer value divided by the number of shares to be acquired.

Therefore, merger premium per share = offer price, less market price

= $18 - $16.70.

= $1.30

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Assuming the total population is 100 million, the civilian labor force is 50 million, and 44 million workers are employed, the u
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Assuming the total population is 100 million, the civilian labor force is 50 million, and 47 million workers are employed, the unemployment rate it: 6 percent. The natural rate of unemployment is the: full-employment unemployment rate.
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2 years ago
Understanding the legal ramifications what types of policies should organizations implement when using social media tools for re
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Social media is a vital tool for online recruitment in the large MNCs now-a-days.

Explanation:

In the recent, there is a trend of recruiting the new professionals through various online platforms and other social media tools.

With social media many legal consideration comes into account. The organizations while handling social media tools for recruitment has to look on various important points while posting their advertisement and collecting the data of the candidates online. There are severe legal ramifications on using social media in a wrong way, so organization have to be ethical while using them.

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3 years ago
Firm A's demand for a product is 15 units per month. Its supplier charges an ordering cost of $5 per order and $10 per unit with
lys-0071 [83]

Answer:

Annual ordering cost=$32.142

Explanation:

Annual ordering cost = Annual demand/order quantity × ordering cost per order

Annual demand = 15 × 12 = 180 units

Kindly note that there are 12 months in year.

Annual Ordering cost = 180/28 ×  $5= $32.142

Annual ordering cost=$32.142

8 0
3 years ago
Tree City reported a $1,500 net increase in fund balance for governmental funds for the current year. During the year, Tree purc
DIA [1.3K]

Answer

The correct answer is c. $ 7,500.

Explanation:

The reconciliation of the change in fund balance in governmental fund financial statements to the change in net position for governmental activities in the government-wide financials is computed using the GOES BARE mnemonic. The fact pattern only describes measurement focus (GOES) issues computed as follows:

G Change in Governmental Fund Balance     $ 1,500

O Other Financing Sources                                   0

E Expenditure - Capital Outlay                           9,000

(net of depreciation)                                         (3,000)

S Internal Service Fund Net Income                   0

Change in Net Position in government

-wide financial statements                               $ 7,500

5 0
3 years ago
Hunter Manufacturing Inc.'s December 31, 2009, balance sheet showed total common equity of $2,050,000 and 100,000 shares of stoc
Nadya [2.5K]

Answer:

$22.00

Explanation:

Book value per share = Total shareholder equity/ number of share outstanding

Total equity as of 31 Dec 2010 = total common equity at 31 Dec 2009 + net income of 2010 – paid out dividends in 2010 = $2,050,000 + $250,000 - $100,000 = $2,200,000

The book value per share at 12/31/10 = Total equity as of 31 Dec 2010/ number of share outstanding = $2,200,000/ 100,000 = $2200

5 0
3 years ago
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