Answer:
a. The shareholders will want to tender their shares.
c. The gain will be $25.31 million – $23.44 million = $1.87 million.
Explanation:
a. The value of the firm is 1.25 million shares* 15= $18.75 million.
Increase in value, 18.75*135% = $25.31 million, so now this is the value of the firm
If 50% of the shares are bought for $18.75 Million, you will buy 0.625 million shares, so the total amount that will be paid is $11.72 million.
Now, the money against shares will be borrowed as collateral. This means that the new value of the equity will be $25.31 million – $11.72 million = 13.59 million.
1.25 million shares are there so now the price of the share will be = $10.87 million ($13.59 million/$1.25 million = $ 10.87 million).
b.The price of the shares has decreased from $13.59 to $10.87 after the tender offer, everyone will want to tender their shares for $18.75.
c. Supposing everyone tenders the shares and you will buy at $18.75 per share, you will pay $23.44 (18.75 per share *1.25 million shares) to acquire the company and it will be worth $25.31 million.
The gain will be $25.31 million – $23.44 million = $1.87 million.
Answer:
7 workers will be required
Explanation:
We will define actual time required to do a job
= Standard time required for producing each unit x Worker efficiency (%)/100
= 11.65 x 115/100
= 13.3975 minutes
Total available minutes in 4 days = 4 days x 8 hours/ day x 60 minutes / day = 1920 minutes
Therefore ,
Number of units which can be produced by 1 worker in 4 days = 1920 /13.3975
Number of units to be produced = 1000 units
Therefore,
Number of workers required
= Number of units to be produced / Number of units which can be produced by 1 worker in 4 days
= 1000 x ( 13.3975 /1920)
= 6.977 ( 7 rounded to nearest whole number )
When deciding the cost of an insurance policy being applied to the customer, then the underwriting experts used the concept of data analytics.
Option C is the correct answer.
<h3>What is underwriting?</h3>
Underwriting is the act where the underwriters confirm the loan approval after analyzing the debt, income, and assets of the borrower.
The concept of data analytics is one of the processes applied to analyze the data along with collection and modeling. it helps the underwriters to figure out the conclusions based on the trends and patterns of the data.
Therefore, data analytics is the tool that underwriters used to compute the cost of insurance policy for the customer.
Learn more about the underwriting in the related link:
brainly.com/question/24988092
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Answer:
KJ Pharma Corporation
KJ Pharma's after-tax cost of debt is:
= 4.55%.
Explanation:
a) Data and Calculations:
Face value of the bond = $100
Annual coupon rate (cost of debt) = 6.5%
Maturity period of bond = 20 years
Tax rate = 30%
After-Tax Cost of Debt = 6.5 (1 - 0.3)
= 4.55%
b) KJ Pharma's after-tax cost of debt is the interest paid on the bond less any income tax savings accounted for as deductible interest expenses. To calculate the after-tax cost of debt, KJ subtracts the company's effective tax rate from 1 and multiplies the difference by its cost of debt.
