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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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the of a business, agency, household, or another economics unit involves the acquisition and use of financial resources and the
dolphi86 [110]

'Financial management of a business, agency, household or another economics unit involves the acquisition and use of financial resources and the protection of equity capital from various sources of risk.

Financial management is the business function concerned with profitability, expenditure, cash, and credit, and ensures that "an organization has the means to achieve its objectives as satisfactorily as possible." The latter is often defined as maximizing shareholder value.

Financial Management is the strategic planning, organization, management and management of financial companies in an organization or institution. It also includes applying management principles to the financial assets of the organization while playing a key role in tax administration.

Financial Management is defined as the management and analysis of money and investments for the purpose of making business decisions by individuals or organizations. An example of financial management is the work of a company's accounting department.

Learn more about financial management brainly.com/question/989344

#SPJ4

5 0
2 years ago
If the reserve requirement is 20 percent and Acme Laundromat deposits $10,000 cash in the banking system, the total change in th
NISA [10]

Answer:

Bank to loan = $8,000

Explanation:

Given:

Amount bank had = $10,000

Reserve requirement = 20%

Find:

Change in money supply

Computation:

Bank to loan = $10,000 (100% - 20%)

Bank to loan = $10,000 (80%)

Bank to loan = $8,000

6 0
3 years ago
A company has fixed costs of $270,000, a unit contribution margin of $14, and a contribution margin ratio of 55%. If the firm wa
zavuch27 [327]

Answer:

Company must make sales of $600,000.

Explanation:

Compute the contribution margin of the company:

Contribution margin=Pre−Tax Income+Fixed Cost

=$60,000+$270,000

=$330,000

Thus, the contribution margin is $330,000. It is computed by summing up the fixed cost and the pre-tax income of the company.

Compute the total sales of the company:

Contribution margin ratio=  Contribution margin  / Sales  

55%=  $330,000/ Sales

Sales=  $55%  / $330,000 ​  

=$600,000    

The sales of the company are $600,000.

4 0
3 years ago
1 ) Common Equity (C/E)= $5 million, Shares outstanding are 450,000, market price of stock is $16.62 What is the difference betw
vovikov84 [41]

Answer:

The difference between book value and market value  is for 2,479,000 dollars

per share the difference is for 5.5 dollars

b) book value per share 7

c) new working capital: 2,000

d= EBIT 8,000,000

Explanation:

450,000 x 16.62 - 5,000,000 = 2,479,000

in share price:

16.62 - 5,000,000/450,000 = 5.5

2,000,000 + 400,000 - 300,000 = 2,100,000

2,100,00 / 300,000 = 7

c) net working capital

current assetis - current liab

5,000 - 3000 = 2,000

sales               20,000,000

operating cost 12,000,000

earnings before interest and taxes 8,000,000

5 0
3 years ago
You are considering purchasing a put option on a stock with a current price of $33. The exercise price is $35, and the price of
solniwko [45]

Answer: $3.91

Explanation:

The following information can be gotten from the question:

S = Current stock price = $33

C = Call Price = $2.25

K = Exercise Price = $35

e = 2.71

Rf = Risk free rate = 4% = 0.04

T = Time = = 90 days = 90/365

Put Price will now be calculated as:

= C - S + K × e^(-rt)

= 2.25 - 33 + 35 × 2.71^(-0.04 × 90/365)

= $3.91

3 0
3 years ago
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