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lozanna [386]
3 years ago
9

George's Equipment is planning on merging with Nelson Machinery. George's will pay Nelson's shareholders the current value of th

eir stock in shares of George's Equipment. George's currently has 4,600 shares of stock outstanding at a market price of $31 a share. Nelson's has 1,600 shares outstanding at a price of $38 a share. What is the value per share of the merged firm assuming there is no synergy
Business
1 answer:
zalisa [80]3 years ago
4 0

Answer:

31 per share

Explanation:

The computation of value per share is shown below:-

Share exchange ratio = MPS of Nelson ÷ MPS of George

= $38 ÷ $31

= 1.2258

MPS a + b = MVa + MVb ÷ Number of shares a + Number of shares b × SER

= (1600 × $38) + (4,600 × $31) ÷ 4,600 + (1,600 × 1.2258)

= $60,800 + $142,600 ÷ 4600 + 1,961

= $203,400 ÷ 6,561

= 31 per share

Therefore for computing the value per share we simply applied the above formula.

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8 0
3 years ago
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Answer:

the standard deviation of demand during the 4-day lead time is 30

Explanation:

the computation of the standard deviation of demand during the 4-day lead time is given below;

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= Sqrt(4) × 15

=2  × 15

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Hence, the standard deviation of demand during the 4-day lead time is 30

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3 years ago
Creating a graphic organizer is a good strategy to use for A. recognizing a problem. B. brainstorming a solution. C. evaluating
Stells [14]

Answer:

B: Brainstorming a solution

Explanation:

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-ask questions

-write down ideas

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3 years ago
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Answer:

b. payoff

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