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Alina [70]
3 years ago
11

Three Guys Burgers, Inc., has offered $18 million for all of the common stock in Two Guys Fries, Corp. The current market capita

lization of Two Guys as an independent company is $15.9 million. Assume the required return is 8.1 percent and the synergy from the acquisition is a perpetuity.
What is the minimum annual synergy that Three Guys feels it will gain from the acquisition?
Business
1 answer:
Pavlova-9 [17]3 years ago
3 0

Answer:

Annual synergy gain = $ 178,500

Explanation:

Value of synergy gain from acquisition = 18 - 15.9 = 2.1 million

Annual synergy gain = 2.1 *.085 = .1785 million or $ 178,500

Annual synergy gain = $ 178,500

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Answer:

0.45

Explanation:

Calculation for What would be its weight on common equity

Using this formula

Weight on common equity= Common equity/(Debt+Preferred stock+Common equity+ )

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Therefore What would be its weight on common equity is 0.45

3 0
2 years ago
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sergey [27]
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Someone who likes building, designing, or creating things probably has a(n)
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It is an architect because they love to build things and create things as well  <span />
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Which one is NOT considered an universal virtue?
Juli2301 [7.4K]

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B - happiness

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5 0
2 years ago
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Goryan [66]

Answer:

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Explanation:

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I hope this helps and please don't hesitate to ask if there is anything still unclear!

7 0
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