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Firdavs [7]
3 years ago
13

Rudy's, Inc. and Blackstone, Inc. are all-equity firms. Rudy's has 1,500 shares outstanding at a market price of $22 a share. Bl

ackstone has 2,500 shares outstanding at a price of $38 a share. Blackstone is acquiring Rudy's for $36,000 in cash. What is the merger premium per share?
Business
1 answer:
aleksandr82 [10.1K]3 years ago
8 0

Answer:

Merger premium per share is equal to $2

Explanation:

Step 1. Given information.

  • 1500 shares outstanding
  • market price of 22
  • Blackstone has 2.500 shares
  • Outstanding price 38
  • Blackstone acquire Rudy's for $36.000

Step 2. Formulas needed to solve the exercise.

Merger premium per share = (Blackstone acquire Rudy's /shares outstanding) - market price

Step 3. Calculation.

Merger premium per share = ($36,000/1,500) - $22 = $2

Step 4. Solution.

Merger premium per share is equal to $2

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Answer:

b. $1750

Explanation:

Provided that

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The amount of the sales discount would be

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viktelen [127]

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7 0
3 years ago
IM WASTING 50 POINTS SO PLEASE ANSWER!
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Answer:

One of the key aspects of choosing the best career is by thinking about yourself. Many people in your life can tell you what you should do, or what they think you’d be good at, but the only person who truly knows which career is best, is yourself.

Start by thinking about your passions and what you’re interested in. If you have a love for writing, a career in construction, for example, may not be the best fit. Instead, you’d look at more creative fields such as journalism, copywriting or even creative writing. Knowing and discovering what you enjoy and feel passionate about will give you a strong start to discovering a career path for you.

I hope this will help you,

God blessed you

4 0
2 years ago
Read 2 more answers
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