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tia_tia [17]
3 years ago
15

Your company has earnings per share of $ 4.19. It has 1.9 million shares​ outstanding, each of which has a price of $59. You are

thinking of buying​ TargetCo, which has earnings per share of $ 2.10, 1.9 million shares​ outstanding, and a price per share of $ 21.You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. If companies in the same industry as TargetCo are trading at multiples of 12 times​earnings, what would be one estimate of an appropriate premium for​TargetCo?
TargetCo has $2.10 in​ earnings, so if other companies in its industry are trading at 12 times​ earnings, then a starting point for a valuation of TargetCo in this transaction might be ________ per​share, implying a _________ premium
Business
1 answer:
sveticcg [70]3 years ago
8 0

Answer:

If the current earnings per share of TargetCo. are $2.10, and the times earnings multiple is 12, the relative valuation should result in a $2.10 x 12 = $25.20 per stock. This means that the premium per stock = $25.20 - $21 = $4.20, and the total premium paid for all the 1.9 million shares = $7.98 million.

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Answer:

B) John can expect to earn $120,000 in revenue more by expanding, but that is less than the cost of expansion, $150,000.

Explanation:

If John decides not to expand his expected revenue will be = ($100,000 x 50%) + ($300,000 x 50%) = $50,000 + $150,000 = $200,000

If John decides to expand his expected revenue will be = ($100,000 x 30%) + ($300,000 x 30%) + ($500,000 x 40%) = $30,000 + $90,000 + $200,000 = $320,000

If John decides to expand, his revenue will increase by $120,000.

Since we are not told if John's revenue is yearly or not, I assume that it includes a whole business or project cycle. The cost of expanding is $150,000 while the incremental revenue is only $120,000.

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3 years ago
Which is NOT a first degree misdemeanor for a licensee if found guilty? The publishing of false or misleading information The un
svet-max [94.6K]

Answer:

1. The unlawful collection of an advance fee for listing real property

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Explanation:

Considering the available options, the ones that are NOT a first-degree misdemeanor for a licensee if found guilty are:

1. The unlawful collection of an advance fee for listing real property

2. Acting as a broker or sales associate without holding an active, current license.

This is because a first-degree misdemeanor is considered to be a result of "rental information violations."

And considering the available options, The publishing of false or misleading information and Failing to provide accurate and current rental information for a fee, falls within the misdemeanor charges.

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Unaffected. That Is Your Answer.
4 0
3 years ago
In texas, the dual budgeting system consists of separate budgets from which two groups?
Ilya [14]

In Texas, the dual budgeting system consists of separate budgets from The legislative and executive branches. This is further explained below.

<h3>What is a dual budgeting system?</h3>

Generally, Both the legislative and executive arms of government in Texas are responsible for creating their own budgets under the state's dual budgeting system.

In conclusion, Therefore, the dual budget process offers a division of tasks that often has more to do with historical structures, political goals, prospective funding sources, and institutional capabilities than with the actual nature and purpose, including accurate description, of the expenditures themselves.

Read more about the dual budgeting system

brainly.com/question/17003421

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8 0
2 years ago
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FinnZ [79.3K]

The correct answer is budget.

If you are creating a personal budget you need to estimate how much your income and expenses will be for a period. This will allow you to make smart financial decisions and hopefully save for things that you need and/or want.

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