1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nastasia [14]
3 years ago
8

Company A considers buying company B by means of a tender offer. Company B will accept any offer of A which reflects a fair valu

e (namely, any offer which is not below the expected value of the project to B, given B's information). Company B is currently undertaking a major project. If the project is a complete failure the fair value of each share of B will be $60, and if it's a complete success the fair value of a share will be $120. The outcome of the project can vary from a complete failure to a complete success, and all outcomes are equally likely. That is, the fair value of a share of B can be any number between 60 and 120 equally likely. The management of A is significantly more skillful than that of B. Under the management of A the share price of B will be $20 higher than under the current management of B. Assume that the offer of A is made before the outcome of the project is known, but B will decide to accept or reject after the outcome is announced. What should A offer B in terms of a price per share
Business
1 answer:
Evgen [1.6K]3 years ago
3 0

Answer:

the price per share in the case when A offers B is $200

Explanation:

The computation of the price per share is as follows:

The fair value is

= ($60 + $120) × 50%

= $90

The 50% represent the percentage of equally

Now the price per share is

= $90 + $90 + $20

= $90 + $110

= $200

Hence, the price per share in the case when A offers B is $200

The same is to be considered

You might be interested in
The adjusted trial balance for Rowdy Profits Corporation reports that its equipment had cost $240,000. For the current year, the
garik1379 [7]

Explanation:

The reporting is shown below:

                                        Income statement

Particulars                  Amount                   Particulars                  Amount          

Depreciation

expense                      $28,800

                                            Balance sheet

Liabilities                    Amount        Assets                     Amount

                                                 Equipment                     $240,000

                                                Less: Accumulated

                                               Depreciation                  -$144,000

                                          Net value of an equipment $96,000

Only these items would be displayed on the income statement and the balance sheet

6 0
3 years ago
The main benefit of a technical school certification is
gulaghasi [49]
More time spent perfecting skills compared to college
5 0
3 years ago
Harvey Industries, a Wisconsin company, specializes in the assembly of high-pressure washer systems and in the sale of repair pa
noname [10]

Answer:

<em>1. Airplanes. </em>

<em>2. Ice-cream plants. </em>

<em>3. Building maintenance. </em>

<em>4. Engines. </em>

<em>5. Automobiles. </em>

<em>6. Barns.</em>

<em>7. Lift trucks. </em>

<em>8. Swimming pools.</em>

<em>9. Machinery. </em>

Explanation:

In this scenario, Harvey Industries, a Wisconsin company, specializes in the assembly of high-pressure washer systems and in the sale of repair parts for these systems. The products range from small portable high-pressure washers to large industrial installations for snow removal from vehicles stored outdoors during the winter months.

Basically, the high-pressure water cleaning is a process that involves using water running at a very high pressure and sometimes high temperature to remove mold, dirt, dusts, loose paint, snow removal, grime etc from physical objects such as vehicles, equipments, buildings, billboards through the use of a plunger pump.

The typical uses for high-pressure water cleaning include: Airplanes, Ice-cream plants, Building maintenance, Engines, Automobiles, Barns, Lift trucks, Swimming pools, Machinery etc.

The proper application of high-pressure water cleaning helps to reduce environmental degradation, ensure equipments or environment are clean and neat. Also, high and tight places that cannot be easily reached by humans can still be cleaned with the help of a high-pressure water cleaner.

3 0
3 years ago
How should the business be developed in the future? Be specifi c and consider changes related to your supplier, the monogramming
levacccp [35]

Answer:

Target customers and products

Explanation:

Businesses should be developed in the future along the line of its target customers and also in consideration of the type of products it produces. the main aim of every business is to meet and solve the needs of its target customers and its development should as well be tailored to always fulfill the need of its target customers.

Business are not developed based on specifics related to the supplier because the suppliers are not the end users of the project but the target customers are.

5 0
3 years ago
Information related to Mingen back Company for 2015 is summarized below: Instructions: A. What amount of bad debt expense will M
Alex Ar [27]

Answer:

jhgiojhugfvcpokjhgfuhjkm,l;/;.l,kmjbh

Explanation:

5 0
3 years ago
Other questions:
  • Sole Occhiali Group, an Italian company that sells sunglasses, reported Net Sales of $181,000 and Cost of Goods Sold of $59,500.
    9·1 answer
  • Julia brings home ​$2 comma 200 per month after taxes.​ Julia's rent is ​$806 per​ month, her utilities are ​$136 per​ month, an
    12·2 answers
  • A 65-year-old retiree wishes to convert the cash value of his insurance policy into an annuity. He can select an annuity that wi
    7·1 answer
  • Capital Radio PLC, the United Kingdom's biggest commercial radio firm announced in 2002 that it would cooperate with Walt Disney
    15·1 answer
  • Which of these rules of etiquette exists at every workplace?
    9·2 answers
  • Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house
    5·1 answer
  • Tamarisk Corporation purchased a truck by issuing an $118,400, 4-year, zero-interest-bearing note to Equinox Inc. The market rat
    6·1 answer
  • Which employees typically work in an office environment within schools? Check all that apply.
    11·2 answers
  • . Which one of the following statements is TRUE?
    15·1 answer
  • Write a short memo to Ms Loki explaining the business performance findings of your statement of cash flow.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!