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Ber [7]
3 years ago
6

If the minority price for a single share of stock of a company is $20, if there are 500 thousand shares of stock, and a person o

ffers to buy the entire company for $14.5 million, what is the controlling interest premium being offered
Business
1 answer:
KATRIN_1 [288]3 years ago
8 0

Answer:

$4,500,000

Explanation:

current market price per stock $20

total stocks outstanding 500,000

corporation's total value = 500,000 x $20 = $10,000,000

investor's offer to purchase 100% at $14,500,000

controlling interest premium = $14,500,000 - $10,000,000 = $4,500,000

new price per stock = $14,500,000 / 500,000 = $29

The controlling interest premium equals the difference between the current market price of the stock and the purchase offer.

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The ​short-run effect of consumers becoming more pessimistic will be for the
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On March 15, Viking Office Supply agrees to accept $1,200 in cash along with a $2,800, 60-day, 15 percent note from one of its c
Rzqust [24]

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2 years ago
Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $11.90, but management expects to reduce the p
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Answer:

The price of the stock is $66.5

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The constant growth model of the DDM approach will be used to calculate the price of such a stock today.

The formula for the constant growth model is,

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6 0
3 years ago
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