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
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

You might be interested in
Better writing helps make your efforts more ___________.A. effectiveB. analyticalC. complexD. None of the above
11111nata11111 [884]

Answer:

A. effective

Explanation:

As more and more one writes better, there will be communication of right message and ideas that will be passed across to the audience. As with other disciplines, continuous practice would make one to be better in terms of writing .There should also be search for knowledge which will assist to develop writing skills.

Through continuous writing, one's writing will be more effective having come across different hurdles. The hurdles here means challenges one would encounter at the beginning but which have now become Surmountable due to continuous practise.

7 0
3 years ago
Mo has a credit card that gives a 3% discount on every purchase. The annual percentage rate on the card is 12%. He is purchasing
Luden [163]

Answer:

If Mo pays cash, the cost of the purchase will be $140.

If Mo uses the credit card and pays the full balance during the billing cycle, the cost of the purchase will be $135.80.

Explanation:

If Mo pays cash, it implies that she does not get the 3% discount she is entitled to, with the use of her credit card.  Therefore, she will bear the full cost.  However, if she uses the credit card, the discount is $4.20 ($1540 * 97%) and she will pay only $135.80 as the discounted price of the electronic reader.

5 0
3 years ago
Read 2 more answers
Clint had $748.87 in his checking account, and a check that he wrote to his landlord for $725.00 was just deposited. This will r
ludmilkaskok [199]
The answer is b my guy dont worry im wrong
8 0
2 years ago
Read 2 more answers
The next dividend payment by Savitz, Inc., will be $2.34 per share. The dividends are anticipated to maintain a growth rate of 4
STALIN [3.7K]

Answer:

a. 10.8%

b. 6.32%

c. 4.5%

Explanation:

a. Required return= (Expected dividend payment/current stock price) + dividend growth rate

Required return= (2.34/37)+0.045

Required return= 0.108  ⇒ 10.8%

b. Dividend yield= dividend per share / price per share

Dividend yield= 2.34/37= 0.0632 ⇒ 6.32%

c. The capital gains yield refers to the rise in the price of the stock. In this case, the statement indicates that the dividends are anticipated to maintain a growth rate of 4.5 percent forever and according to the definition of capital gains yield that would be the answer for the expected capital gains yield.

3 0
3 years ago
While doing an online search for a music venue, Darcy ran across a performance of Lady Gaga that featured her hair neatly wrappe
torisob [31]

Answer: (C) Product placement

Explanation:

 The product placement is one of the type of marketing technique in which the various types of specific products or the brands are incorporate into the other types of works for example television and the various types of films program.

The product placement is important as by using this strategy it helps in increase the sale and also increase the awareness of the brands.  

According to the given question, the marketers basically categorized into the advertising form as the product placement.  

Therefore, Option (C) is correct.  

 

3 0
3 years ago
Other questions:
  • Round Hammer is comparing two different capital structures: An all-equity plan (Plan I) and a levered plan (Plan II). Under Plan
    9·1 answer
  • Open market operations are _____. the processes by which money enters into circulation the buying and selling of government secu
    13·2 answers
  • You are a shareholder in a C corporation. The corporation earns $ 1.86$1.86 per share before taxes. Once it has paid taxes it wi
    9·1 answer
  • Jerome Corporation's bonds have 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. The bond has a
    15·2 answers
  • Leigh has information on how many customers purchase bagels at her coffee shop. With the bagel sales numbers from the past four
    6·2 answers
  • Kara voluntarily quit her job as an insurance agent to return to school full time to earn an MBA degree. With degree in hand, sh
    7·1 answer
  • If 11 workers can produce a total of 54 units of a product and a 12th worker has a marginal product of 6 units, then the average
    5·1 answer
  • 60 points please help
    12·1 answer
  • During the deep recessions of the early 1980s and of 2007-2009, unemployment reached roughly __________.
    6·1 answer
  • 11. The Federal statute that was intended to reduce the number of repetitive NFIP claims while also reducing flood losses and co
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!