The ________ analysis is a process that includes research into target markets and the promotional strategies to reach them.

Firm B Firm T Shares outstanding 4,800 1,800 Price per share $ 47 $ 20 Firm B has estimated that the value of the synergistic be

zmey [24]

Answer:

A. Share Offer Is Better

B. .4569

Explanation:

A. Based on the information given the shareholders of Firm T will be better off with the STOCK OFFER because cash offer is the amount of $22 per share.

B. Calculation to determine the exchange ratio of B shares to T shares

First step is to calculate the New shares created

New shares created = 1,800(1/2)

New shares created = 900 new shares

Second step is to calculate the value of the merged firm

Value of the merged firm= 4,800($47) + 1,800($20) + $9,100

Value of the merged firm= $270,700

Third step is to calculate the price per share of the merged firm

Price= $270,700/(4,800 + 900)

Price= $270,700/5,700

Price= $47.49

Fourth step is to calculate the Equity offer value

Equity offer value = (1/2)($47.49)

Equity offer value = $23.75 per share

Fifth step is to calculate the post merger share price

Value of the merged firm= $270,700

Shares in new firm = 4,800 + 1,800x

Hence:

Post merger share price:

P= $270,700/(4,800 + 1,800x)

Sixth step

For the target firm’s shareholders to be indifferent which means they have to receive the same wealth

Hence;

1,800(x)P= 1,800($22)

Let solve this equation for P

P= $22/x

Now Let Combine the two equations

$270,700/(4,800 + 1,800x) = $22/x

x= .4569

Seventh step is to calculate the NPV

NPV = 1,800($20) + $9,100 – 1,800($22)

NPV = $5,500

Eight step is to calculate the Share price

Share price = [4,800($47) + $5,500]/4,800

Share price = $48.15

Now let calculate the Exchange ratio

Exchange ratio = $22/$48.15

Exchange ratio = .4569

Therefore the exchange ratio of B shares to T shares that the shareholders in T would be indifferent between the two offers is .4569

8 0

3 years ago

Which of the following is not generally regarded as a legitimate reason for gov't to intervene in a market?

Bess [88]

Answer:

C. To enforce property rights

Explanation:

Government intervention in market can be non materistically via regulation , materistically via taxes & subsidy.

Although the second materislistic way of tax, subsidy comes under the perview of 'Government Budget' .

Government budget is anual financial statement showing economy's expected revenue & expenditure .

Economic growth & stability by reallocation of resources , reducing income inequalities - reflect 'efficiency' & 'equity' as valid reasons .

Foreign protection is also not invalid depending upon the initial budding stage of a developing economy & its global stand. Eg - India 1950 to 1990 .

However all these are progressive legitimate reason for govt. Intervention .

But , enforcing property rights is a feature of 'socialistic (communistic) economy - which has its own demerits like loss of consumers soveireignity , lack of postive competitive efficiency , govt overburden.

7 0

3 years ago

Successfulness of the competition policy in South Africa

Gwar [14]

Answer:

Five examples that support successfulness of the competition policy of South Africa are: 1) The product choices along with its competitive prices were provided to the consumers. 2) Practices such as horizontal collusion and resale price maintenance was declared unlawful in 1984.

Explanation:

8 0

3 years ago

Four months ago, you purchased 1,300 shares of lakeside bank stock for $23.32 a share. you have received dividend payments equal

Marina CMI [18]

<span>If I purchased 1,300 shares of lakeside bank stock for $23.32 a share. The total worth of the share is 1, 300 * 23.32 = $30, 316. Okay I received payments dividend worth 0.61 a share; that becomes 0.61 * 23.32 = $14.2252. I sold 1, 300 shares for $24.32. So I sold it for 1, 300 * 24.32 = $31616. My total return = (Amount I sold the share + dividend received) - Amount I bought the share. So we have (31616 + 14.2552) - 30316 = $31630.2552 - $ 30, 316 = $1314.2552</span>

7 0

3 years ago

QS 4-15 Computing and analyzing gross margin ratio LO A2 Carrier Lennox Trane York Sales $ 150,000 $ 550,000 $ 38,700 $ 255,700

kogti [31]

Answer:

Maybe is you payed attention you would have knew the answer

Explanation:

Good luck :))

4 0

3 years ago