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
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

You might be interested in
As Quentin checks out of a hotel, he recalls the expectations of quality and service he had upon arriving at the hotel and reali
Soloha48 [4]

Answer:

Experiential

Explanation:

Experiential is the term which is defined as something experiential and it comes from the real world or from experience. It is the procedure of learning through a experience, which is particularly stated as learning by reflection on doing.

So, in this case, the Quentin checks into a hotel, where on arriving he realizes that grounded on expectations, he is not thrilled with the experience. Therefore, this kind of purchase is defined as experiential.

3 0
3 years ago
If these are the only four sellers in the market, then when the price decreases from $4 to $2, the market quantity supplied
inn [45]

Answer:

Decreases by 50 percent

Explanation:

The law of supply asserts that other things remaining constant, the quantity of goods and services supplied increases as price rises. Therefore, the price and quantity supplied are directly related. Should the price fall, the quantity supplied will also decrease. Producers will prefer to supply more when the price is high to make more revenue.

The supply curve is upward sloping indicating how quantity supplied changes at different price levels. In the case, the price has decreased from $4 to $2, which represents a 50 percent drop. The quantities supplied will decrease as per the law of supply.  A 50 percent decrease may result in a similar decrease in quantity supplied as the supply curve is upward sloping.

4 0
3 years ago
Marketers segment markets to achieve which of the following objectives?
Zolol [24]
<h2><em><u>Question:</u></em></h2>

<em>→</em><em>Marketers segment markets to achieve which of the following objectives?</em>

<h2><u><em>Choices</em><em>:</em></u></h2>

<em>a. To create an offer that best fits the desires of the groups that exist in the </em><em>market.</em>

<em>b. To identify the most appropriate media for advertising,</em>

<em>C. To better understand their target segments.</em>

<h2><em><u>Answer:</u></em></h2>

  • <em>a. To create an offer that best fits the desires of the groups that exist in the </em><em>market.</em>
<h2><em><u>Explanation:</u></em></h2>

<em>→</em><em>marketing efficiency by directing effort specifically toward the designated segment in a manner consistent with that segment's characteristics.</em>

<em>#</em><em>B</em><em>r</em><em>a</em><em>i</em><em>n</em><em>l</em><em>i</em><em>e</em><em>s</em><em>t</em><em>B</em><em>u</em><em>n</em><em>c</em><em>h</em>

3 0
2 years ago
Oslund Company manufactures only one product and uses a standard cost system. During the past month, the following variances wer
madam [21]

Answer:

6,000 Hours

Explanation:

Variable overhead efficiency variance = 20,000 U

(SH - AH) * SVR = - 20,000

Actual hours = Standard hours + 20% = 1.20*SH

(SH - (1.20SH) * 20 = - 20,000

-0.20 SH = -20,000/20

-0.20 SH = -1,000

SH = 5,000 Hours

Actual hours = 1.20 * 5,000 Hours

Actual hours = 6,000 Hours

6 0
3 years ago
If you have a team that is low on conscientiousness, which of the following would you recommend?
astra-53 [7]

Answer: E) They need to define the task and maintenance.

Explanation:

Conscientiousness means being thorough and careful in one's task performance. A team that is low on Conscientiousness need to define task and maintenance.

6 0
3 years ago
Read 2 more answers
Other questions:
  • Why might someone who is just starting out prefer a regular savings account to a CD?
    11·1 answer
  • Which of the following statements is true a. ​in market equilibrium there are unconsummated value-creating transactions b. ​in m
    8·2 answers
  • Conor broke his wrist while playing basketball in the backyard. He ended up in the hospital. After an X-ray, MRI, doctor visit a
    9·1 answer
  • _________ management emphasized internal operations because managers were concerned primarily with meeting the explosive growth
    6·1 answer
  • Harry has just inherited $300,000. Harry has decided to quit his job and go to school full time for the next five years by livin
    12·1 answer
  • Franklin Templeton has just invested $8,860 for his son (age one). This money will be used for his son’s education 18 years from
    13·1 answer
  • Recording Transactions Affecting Stockholders’ Equity
    7·1 answer
  • Which of the following is not an example of descriptive research? a respondent’s recent experience of job loss and how it has af
    5·1 answer
  • The Chief Strategy Officer for Miles Corporation is putting together a presentation using the Boston Consulting Group Matrix. Th
    5·1 answer
  • Margo insists that her dreams frequently enable her to perceive and predict future events. margo is claiming to possess the powe
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!