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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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Explanation:

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3 years ago
The number of dependents that people are choosing to have is ?
joja [24]

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<h3>What is the trend in dependants?</h3>

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Find out more on trends in population growth at brainly.com/question/521129.

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5 0
2 years ago
If a household's income rises by 30%, its budget constraint will A) shift out parallel to the old one. B) pivot at the Y-interce
aliina [53]

Answer:

A

Explanation:

A budget constraint is a graph that shows all the combination of goods a consumer can consume given  current prices and income of the consumer.

If income increases, the budget constraint will  shift out parallel to the old

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6 0
2 years ago
During the meeting, the manager exclaims "I am in charge" in order to initiate structure, set goals, assign tasks, and take conc
mart [117]

Answer:

<u>Directive.</u>

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According to House and Mitchel, there are four styles of leaders:

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So on this issue, the leadership style that best fits is the directive leader.

In this leadership style, it is the leader who provides the guidelines for the development and execution of tasks, and the coordination of work. The leader provides clear goals and expectations about performance to achieve the expected results.

5 0
3 years ago
Jason and his family were invited to dinner by a family friend who had just opened a high-end restaurant. Jason and his family w
mixer [17]

Answer:

C) is the answer in my opinion

7 0
3 years ago
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