The largest country in the EU is Germany. It makes up almost 16% of the European Union's population.
Answer:
a. The shareholders will want to tender their shares.
c. The gain will be $25.31 million – $23.44 million = $1.87 million.
Explanation:
a. The value of the firm is 1.25 million shares* 15= $18.75 million.
Increase in value, 18.75*135% = $25.31 million, so now this is the value of the firm
If 50% of the shares are bought for $18.75 Million, you will buy 0.625 million shares, so the total amount that will be paid is $11.72 million.
Now, the money against shares will be borrowed as collateral. This means that the new value of the equity will be $25.31 million – $11.72 million = 13.59 million.
1.25 million shares are there so now the price of the share will be = $10.87 million ($13.59 million/$1.25 million = $ 10.87 million).
b.The price of the shares has decreased from $13.59 to $10.87 after the tender offer, everyone will want to tender their shares for $18.75.
c. Supposing everyone tenders the shares and you will buy at $18.75 per share, you will pay $23.44 (18.75 per share *1.25 million shares) to acquire the company and it will be worth $25.31 million.
The gain will be $25.31 million – $23.44 million = $1.87 million.
Answer:
Break-even point in units= 770
Explanation:
Giving the following information:
Selling price= $500
Unitary variable cost= $260
Fixed costs= $184,800
<u>To calculate the break-even point in units using the mathematical equation, we need to use the following formula:</u>
<u></u>
Net income= unit contribution margin*x - fixed costs
x= number of units
0= (500 - 260)*x - 184,800
184,800/240 = x
770=x
<u>Now, under the unit contribution margin method:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 184,800/240
Break-even point in units= 770
Answer:D. $0
Explanation:
Goodwill is the excess of the purchasing price of a company value of indentifiable net assets.. The purchasing price in this example is less than the value of the.
