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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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Answer:

$1,000 loss

Explanation:

The numbers are missing here, so I looked for a similar question:

A copy machine cost $5,000 when new and has accumulated depreciation of $4,000.

The carrying value of the copy machine = purchase cost - accumulated depreciation = $5,000 - $4,000 = $1,000

if the copy machine is discarded and doesn't get any money for it, this will result in a loss equal to the carrying value = $1,000

7 0
3 years ago
Charlie sells cookies only in packages of 10. It costs him $3.50 in materials per package. Additionally, he has overhead costs o
yaroslaw [1]

Let x represent the number of packages Charlie needs to sell to make a monthly income of $5, 000 
Since he sells cookies only in packages of 10 then he has to sell 10x to make that income. But Charlie has expenses that has to be deducted from his total sales to make that figure.  
So the total expenses is $1, 500 in overhead and an extra $3.50 per material per package. So the total expenses = 1500 + 3.50x 
If he has to make $5, 000 at the end of the month we have
 10x - (1500 + 3.50x) = 5000
 10x - 1500 - 3.50x = 5000
 6.50x = 5000 + 1500 = 6500
 Solving we find:
 x = 1, 000 packages


5 0
3 years ago
Solving for dominant strategies and the Nash equilibrium Suppose Clancy and Eileen are playing a game in which both must simulta
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See attached file

Explanation:

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a table contains a column that tabulates the number of pages printed per da. the blank cells denote days on which pages were not
snow_tiger [21]

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B) =COUNT(A2:A101)

Explanation:

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=COUNT(Starting cell#<u>:</u>Ending Cell)

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m_a_m_a [10]

The term for goods that your business ships to another country is known as <u>Exports</u>.

Export/ Exporting:

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  • The exports, along with imports, make up international trade.
  • They are incredibly important to modern economies as they offer people and firms many more markets for their goods.
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