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IRISSAK [1]
3 years ago
10

Consider the following pre-merger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms h

ave no debt outstanding. Firm B Firm T Shares Outstanding 8,700 3,600 Price per Share $47 $19 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $16,700. If Firm T is willing to be acquired for $21 per share in cash, what will be the price per share for the merged firm? $47 $46.29 $48.09 $19
Business
1 answer:
anastassius [24]3 years ago
4 0

The share price for the merged firm is $48.09. Therefore, the correct option is C

<u>Explanation:</u>

(a)-Net Present Value (NPV)

Net Present Value (NPV) = Market Value of the Target Firm + synergistic benefit – Acquisition Value

= [3600 Shares multiply $19] plus $16700 minus [3600 Shares multiply $21]

= $68400 plus 16700 minus 75600

= $9500

“Net Present Value (NPV) = $9500  

(b) Share Price

Share price = [Market Value of the Bidding firm + NPV] / Number of shares of the Bidding firm

= [( 8700Shares multiply $47) plus $9500] / 8700 Shares

= [$408900 + 9500] / 8700 Shares

= $48.09 per share

“Share Price = $48.09 per share”

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Rom4ik [11]

Any organization that organizes their people and resources by client because it relies on a few major customers shows an example of <u>customer departmentalization</u>.

<h3>What is departmentalization? </h3>

Departmentalization is an effort by an organization to achieve some common purpose, coordinate its effort, ensure division of labor, hierarchy of authority, and centralize/decentralize and formalize its operations.

There are four basic types of departmentalization (function, product, customer, and geography). Customer departmentalization depends on the difference between the customer segments so that specialized services could be offered to each segment.

Thus, such an organization is an example of <u>customer departmentalization</u>.

Learn more about departmentalization at brainly.com/question/25823018

6 0
2 years ago
Where do the prime minster lives
Tems11 [23]

Answer:

of which country!!!!!!!!!!!!!!!!!!!

The Prime Minister's official residence is 10 Downing Street; the Chancellor's official residence is Number 11. The government's Chief Whip has an official residence at Number 12. In practice, the individuals involved may live in different flats; the current Chief Whip actually lives at Number 9.

7 0
3 years ago
Mara is a management consultant for a soda manufacturer that wants to expand into health drinks such as green tea and after-work
mezya [45]

Answer: To carefully consider choices over the period of time before jumping onto any conclusion and making a decision.

Explanation:

Here, in this particular case Mara should carefully take into consideration the choices provided before straightaway jumping onto a conclusion and thus finalizing about it.

Instead of taking choices of the organization as the discrete event. i.e. pondering onto it as a yes/no decision, Mara should take into consideration that the choices made by the organization tends to constitute the strategic method which unveils over a period of time.

5 0
4 years ago
Amber Corporation donated inventory of clothing (basis of $136,000, fair market value of $170,000) to a qualified charitable org
viva [34]

Answer:

charitable contribution deduction =  $153000

Explanation:

given data

basis = $136,000

fair market value = $170,000

solution

we get here charitable contribution deduction that is express as

charitable contribution deduction = Basis + 50% of (Fair - basis)    .......................1

put here value and we get

charitable contribution deduction = $136,000 + 0.50 ($170,000 - $136,000 )

charitable contribution deduction =  $153000

3 0
4 years ago
Vaughn Manufacturing has fixed costs of $30000 per year. Its warehouse sells wine with variable costs of 90% of its unit selling
oksian1 [2.3K]

Answer:

$300,000

Explanation:

Calculation for How much in sales does Vaughn need to break even per year

Using this formula

Sales needed to break even=Fixed cost/(1-Unit selling price Variable costs)

Let plug in the formula

Sales needed to break even=$30,000 / (1 -.9)

Sales needed to break even=$30,000 / (0.1)

Sales needed to break even=$300,000

Therefore How much in sales does Vaughn need to break even per year will be $300,000

8 0
3 years ago
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