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Jlenok [28]
3 years ago
14

Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms ha

ve no debt outstanding. Firm B Firm T Shares outstanding 4,600 1,000 Price per share $ 40 $ 14 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $8,800. Firm T can be acquired for $16 per share in cash or by exchange of stock wherein B offers one of its share for every two of T's shares. Are the shareholders of Firm T better off with the cash offer or the stock offer
Business
1 answer:
Alborosie3 years ago
8 0

Answer:

The answer is "Share offer is better".

Explanation:

Firstly Computing the value of the combined company:

The merger value = the market value of the B company + the market value of the T + synergically advantages

= shares issued * share price of company B + outstanding shares * price per share of company T + benefits for synergies

=4,600 \times \$40+1,000\times \$14+\$8,800\\\\=\$206,800\\\\

Number of new shares which have been created following the merger = the number of shares in the T *exchange ratio

=1000 \times \frac{1}{2}\\\\=500 \ shares\\\\

The percentage price of the fusion company = the value of the fusion company /the share value of the fusion company

The per-share price of the combined company=\frac{\$206,800}{4,600+500}=\frac{\$206,800}{5,100}=\$40.55

The cash offer value = 16 dollars per share

Stock offer value = price of merged company share /2 = \frac{\$40.55}{2}=\$20.27 / \ share\\\\

Thus, share offer is better

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Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for
dybincka [34]

The parents would deposit $ 3150 on the second birthday.

Explanation:

The initial amount deposited on the first birthday- $ 3000

Incremental % for each year deposit- 5 %

Rate of Interest provided by the education savings account- 6%

The term for which they would be depositing- 18 years (until the baby turns of 18 years means 18 annual instalments)

The amount that parents would deposit on the second birthday-

The amount deposited by parents would be 5% more than the amount deposited by them on the previous birthday

Hence incremental amount would be 5% of 3000

(5/100) *3000= $ 150

The amount that would be deposited on 2nd birthday would be 3000+150= $ 3150

3 0
3 years ago
A business organizational form in which all general partners actively participate in ownership and management and are liable for
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Answer:

General partnership

Explanation:

General partnership is a business organization, whereby two or more partners agrees to share the profit, loss and liability that arises from business operation. What this means is that each partner actively participate in the operations of the business and should the company owe any debt, any of the partners may be sued for the business debt including seizure of the owners assets.

One of the advantages of general partnership is the ease of flexibility to structure their business as they deemed fit hence are able to closely monitor and control operations.

4 0
4 years ago
Carol really doesn't like her new boss and is not happy with the new tasks she's been assigned and the long hours she's been wor
Alinara [238K]

Answer:

4)Low job satisfaction

Explanation:

From the question, we are informed that Carol really doesn't like her new boss and is not happy with the new tasks she's been assigned and the long hours she's been working. But she still truly believes in what the company is trying to accomplish.

In this case , Carol has Low job satisfaction.

Whenever an employee job

has satisfaction, he/she will be motivated, it always result to efficiency in the part of employees, they ten to work harder for acheiving the goal of the organization which in turn result to good overall performance of the organization. But in the situation whereby an employee has

Low job satisfaction, the reverse is the case, he/she will not be happy with task given to him/her, no motivation.

Factors that improve Low job satisfaction are;

✓Assuring job security for employee

✓Job benefits

✓Good relationship between employee and employer.

6 0
3 years ago
Assume no price ceiling exists and a market is in equilibrium. then a price ceiling is established which is below the market equ
nevsk [136]
Hi Bobby, thanks for asking a question here on Brainly.

If <span>no price ceiling exists and a market is in equilibrium, then a price ceiling is established which is below the market equilibrium that results in a shortage.

Answer: Letter B </span>✅<span>

</span>Hope that helps! ★ If you have further questions about this question or need more help, feel free to comment below or leave me a PM. -UnicornFudge aka Nadia 
5 0
4 years ago
Regarding relevant nonfinancial​ information, which of the following statements is​ incorrect? A. Managers must always consider
liubo4ka [24]

Answer:

D.

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Based on the information provided it can be said that the most incorrect statement is that Qualitative factors can be ignored because these factors are difficult to measure. Both qualitative and quantitative measures need to be taken into account, especially qualitative in a non-financial situation because the quality aspects of the items carries with it a far greater importance.

5 0
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