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lisov135 [29]
3 years ago
11

American Hardware, a national hardware chain, is considering purchasing a smaller chain, Eastern Hardware. American's analysts p

roject that the merger will result in incremental free flows and interest tax savings with a combined present value of $72.52 million, and they have determined that the appropriate discount rate for valuing Eastern is 16 percent. Eastern has 4 million shares outstanding. Eastern's current price is $16.25. What is the maximum price per share that American should offer?
Business
1 answer:
Travka [436]3 years ago
4 0

Answer:

The maximum price per share that American should offer is $18.13 per share

Explanation:

The computation of the maximum price per share is shown below:

= Present value ÷ Number of outstanding shares

= $72.52 million ÷ 4 million shares

= $18.13 per share

For computing the maximum price, we used the present value and the discount rate is irrelevant in the computation part. Hence, it is ignored plus the current price is also ignored.

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Answer:

Total interest paid = $606.63

Explanation:

First calculate the monthly payment for first six months

Monthly interest for first 6 months =.006/12=.0005

= 6500*(1.0005)^6

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Interest rate for next six months

=17.37%/12=1.45%

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Total interest paid = 7106.63-6500  

Total interest paid = 606.63

7 0
3 years ago
A registered representative with a wealthy clientele has many clients that are officers of publicly held companies. The register
navik [9.2K]

Answer:

buy ADAP common stock

Explanation:

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2 years ago
the government enacts regulation to institute enforceable property rights for business investment. which input in the production
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The effect on economic growth in the country is the capital stock is decreasing.

<h3>What is economic growth?</h3>

The rise or improvement in the market value of the commodities and services generated by an economy during a specific time period, adjusted for inflation, is referred to as economic growth. Traditionally, statisticians use the real GDP growth rate as a proxy for measuring economic growth. To account for inflation's distorting influence on the pricing of produced items, growth is typically expressed in real terms, or terms adjusted for inflation. Using national income accounting, economic growth is measured. It has all the benefits and disadvantages of that measure since economic growth is calculated as the annual percent change of GDP. Commonly, the GDP to population ratio is used to compare the economic growth rates of different nations (per-capita income).

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10 months ago
In risk management, What does risk evaluation involve
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3 years ago
Read 2 more answers
Fernandez Corporation purchased a truck at the beginning of 2014 for $50,000. The truck is estimated to have a salvage value of
valentinak56 [21]

Answer:

The depreciation for 2014 is $6900

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Explanation:

Please see attachment .

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