If the merge happens, shareholders of both companies will have a stake in the new one.
Merger announcements will specify what percentage of the combined company each group of shareholders will own based on the deal's terms. Shareholders whose shares are not exchanged will find their control of the larger company diluted by the issuance of new shares to the other company's shareholders.
To know more about shareholders visit :
brainly.com/question/29803660
#SPJ4
Answer:
d. 4 years
Explanation:
The formula to compute the payback period is shown below:
= Initial investment ÷ Net cash flow
where,
Initial investment is $200,000
And, the net cash flow = $50,000
Now put these values to the above formula
So, the value would equal to
= ($200,000) ÷ ($50,000)
= 4 years
All other information which is given is not relevant. Hence, ignored it
Answer:
The total investment in P should be $405.40 which is further divided in X and Y as $243.24 and $162.16 respectively.
Explanation:
Expected return of risky portfolio is given as
E(P)=W(X)E(X)+W(Y)R(Y)
= 0.60*14% + 0.40*10 % = 12.40%
So the expected return of risky portfolio is 12.40%.
Let the investment in risky portfolio be p
(1-p)*5% + p*12.40% = 8%
Solving this gives
p = 0.4054*$1000=$405.4
So the amount to be added in the risky portfolio is $405.4. This is further divided in X and Y as follows
amount invested in X = 0.4054*0.60*1000 = $243.243
amount invested in Y 0.4054*0.40 * 1000 = $162.162
So the total investment in P should be $405.40 which is further divided in X and Y as $243.24 and $162.16 respectively.
Answer:
Explanation:
a) as the rate of return on fine art falls, allocation will shift towards saving in bank as these two options are substitutes
b) as the allocation shifts towards saving in bank, national savings rate increases
