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3 years ago

One major difference between a nation's balance of trade and its balance of payments is that

1 answer:

4 0

The balance of commerce is the difference in the value of exports and imports of only visible items. The balance of trade adds imports and exports of goods alone, clearance items. A balance of trade of a country can be favirable or infavirable but BoP regularly balance

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You work for a leveraged buyout firm and are evaluating a potential buyout of UnderWater Company. UnderWater's stock price is $

sladkih [1.3K]

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.

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3 years ago

Future value of an annuity: Carlos Menendez is planning to invest $3,500 every year for the next six years in an investment payi

emmainna [20.7K]

7 is the annual rate for 6 years

8 0

3 years ago

You plan on saving for a large home improvement project using the following cash flows: $50,000 today, $25,000 next year, and $1

lesya692 [45]

Answer:

Total= $98,000

Explanation:

Giving the following information:

You plan on saving for a large home improvement project using the following cash flows: $50,000 today, $25,000 next year, and $10,000 the following year. The account earns a 10% return per year.

We need to use the following formula:

FV= PV*(1+i)^n

FV= 50,000*1.10^2= 60,500

FV= 25,000*1.1= 27,500

FV= 10,000

Total= $98,000

8 0

3 years ago

Senior executives at NEC were unwilling to listen to younger scientists who said that LCD technology would appeal to customers w

Dennis_Churaev [7]

Answer:

The correct word for the blank space is: unfreezing stage.

Explanation:

German psychologist and philosopher Kurt Lewin (1890-1947) proposed the organization theory of change in which a firm went through three stages in the process of changing its operation's method: unfreezing, change, and refreeze. The unfreezing is the first step of the model in which employees may be reluctant to change but it is the job of the high executives to promote the need for modification by exposing the failures of the firm's old method of work.

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3 years ago

A $150,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT? a. The

Schach [20]

Answer:

The proportion of each payment that represents interest versus repayment of principal would be higher if the interest rate were higher

Explanation:

Amount of interest component in a loan instalment will be higher as compared with principal amount in the initial period of repayment . As period lapses , interest amount reduces progressively and principal amount increases . When the tenure of loan is increased , proportion of interest increases in an instalment .

3 0

2 years ago