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
A coworker tells you that she put the wrong meeting date in a recent e-mail to an investor, subsequently, the investor missed th
Nataly [62]

Answer:

These statements would fit well in an apology letter:

  • Make a promise that it won't happen again - Putting the wrong date is a very serious and very strange mistake at the same time. It's strange because professionals usually do not make that kind of mistake, and it's serious because it can completely distort as schedule, as it happened in this case.
  • Apologize sincerely - again, as the mistake was serious and strange at the same time, an apology is necessary.
  • Accept responsability - accepting responsability for one's actions is not only the professional thing to do, but also the ethical thing to do.

And this statement is appropriate when presenting a bad newsletter:

  • If the reason or explanation is not confidential and will not create legal liability - giving out specific information in a corporate context can result in legal liabilities that potentially cost a lot of money, therefore, it is important to carefully choose one's words, while at the same time being honest with the reader.

4 0
3 years ago
Country A had a population of 2,000, of whom 1,300 worked an average of 8 hours a day and had a productivity of 5. Country B had
SpyIntel [72]

Answer:

Country

  • c. B had the higher level of real GDP and Country A had the higher level of real GDP per person

Explanation:

Country A's population 2,000, worked 1,300 with 8 hours a day with a productivity of 5 = 52,000 units of something produced. GDP per capita = 52,000 / 2,000 = <u>26 per capita</u>

Country B's population 2,500, worked 1,700 with 8 hours a day with a productivity of 4 = <u>54,400 units</u> of something produced. GDP per capita = 54,400 / 2,500 = 21.76 per capita

3 0
3 years ago
The basic difference between macroeconomics and microeconomics is: In a command economy, the __________ either makes most econom
Novay_Z [31]

Question 2 options are;

- government

- market

- firm

- business sector

Answer:

1. microeconomics concentrates on the behavior of individual consumers and firms, while macroeconomics focusses on the performance of the entire economy.

2. government.

Explanation:

1. Indeed, the government in a command economy (like China) makes most economic decisions itself or at least strongly influences how the decisions are made.

2. We note that the word 'macro' indicates large scope, while 'micro' indicates a smaller scope. And so, the difference is that microeconomics concentrates on the behavior of individual consumers and firms, while macroeconomics focusses on the performance of the entire economy.

5 0
3 years ago
Hello guys please follow me promise to follow back​
Zina [86]

Answer:

OK Sure! On brainly?

6 0
3 years ago
Read 2 more answers
Project 1 requires an original investment of $125,000. The project will yield cash flows of $50,000 per year for 10 years. Proje
mario62 [17]

Answer: $126,613

Explanation:

Net Present value of Project A is:

= Present value of $50,000 annuity + Present value of residual value - Initial investment

Present value of $50,000 annuity:

= 50,000 * ( 1 - ( 1 + rate)^-number of periods) / rate

= 50,000 * ( 1 - ( 1 + 12%) ⁻⁸) / 12%

= $248,382

Present value of residual value:

= 8,000 / ( 1 + 12%)⁸

= $3,231

Net present value

= 248,382 + 3,231 - 125,000

= $126,613

6 0
3 years ago
Other questions:
  • A bank in​ Austin, Texas, has allowed its state banking​ license, under which it had been regulated by the Federal Deposit Insur
    10·1 answer
  • When a country imports more than it exports, it has a(n)?
    10·1 answer
  • Outline the differences between chain stores and departmental stores.​
    5·2 answers
  • Powers drove a truck that his employer leased from Big Trucks. After Big repeatedly failed to respond to Powers' requests to fix
    12·1 answer
  • Bubble-Up, Inc., is a small manufacturer of educational toys for children under age 10. It has co-existed with three other compe
    9·1 answer
  • ZZ Inc. uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assemb
    10·1 answer
  • How much is the new iPhone
    7·1 answer
  • At phoenix instruments, claudia pulls six samples an hour from an assembly line to examine them for quality defects. if she find
    8·1 answer
  • Stock splits can be used to: C) increase the par value per share while decreasing the market price per share. A) adjust the mark
    10·1 answer
  • Several years ago, Tamika Company issued bonds with a face value of $603,000 at par. As a result of declining interest rates, th
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!