answer.
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
g100num [7]
1 year ago
8

TJ's and Corner Grocery are all-equity firms. TJ's has 2,500 shares outstanding at a market price of $16.70 a share. Corner Groc

ery has 3,000 shares outstanding at a price of $22.50 a share. Corner Grocery is acquiring TJ's for $45,000 in cash. What is the merger premium per share?
Business
1 answer:
valentina_108 [34]1 year ago
4 0

Answer:

$1.3 per share

Explanation:

Data provided in the question:

Number of shares outstanding of TJ = 2,500

Market price = $16.70

Number of shares outstanding of Corner Grocery = 3,000

Price per share of Corner Grocery = $22.50

Cost of acquiring TJ's share = $45,000

Now,

Merger Premium per share = [ Cost of acquiring TJ's share - Market price of TJ's shares ] ÷ Number shares TJ's outstanding

= [ $45,000 - ( $16.70 × 2,500)] ÷ 2,500

=  [ $45,000 - $41,750 ] ÷ 2,500

= $3,250 ÷ 2,500

= $1.3 per share

You might be interested in
The population of a country Dnalgne is 90 million in 1997 and increasing at a rate of 0.1 million per year. The average annual i
adoni [48]

Answer:

The answer is: 2.514% in percentage term or $56,560 million in absolute term.

Explanation:

The entire population income of Dnalgne in the beggining of 1997 = Total population of Dnalgne in the beginning of 1997 x average annual income of a person in Dnalgne in the beginning of 1997 = 90 million x 25,000 = $2,250,000 million

The poplulation of Dnalgne at the end of 1997 = 90 million + 0.1 million = 90.1 million; The average annual income of a person in Dnalgne at the end of 1997 = 25,000 +600 = $25,600

The entire population income of Dnalgne in the end of 1997 = Total population of Dnalgne at the end of 1997 x average annual income of a person in Dnalgne at the end of 1997 = 90.1 million x 31,000 = $2,306,560 million

Thus. the rise in absolute number is $2,306,560 million - $2,250,000 million = $56,560 million or 56,560/2,250,000 = 2.514% in percentage term.

5 0
2 years ago
A document that totals what the customer owes is called _____.
AnnZ [28]
Your answer is
<span>B. an invoice</span>
6 0
2 years ago
In a business environment, persuasion is critical to success. Persuasion is necessary when you anticipate resistance or when you
wariber [46]

Answer:

The correct answers are:  

(C) Anticipate objections: A person who persuades correctly and with ethics can anticipate the objections or doubts that people who are subject to persuasion have in order to effectively answer any questions they may have and  be able to make the deal effective.

(D) It generates interest: It generates interest because at that time it usually creates a need for the person who does not have or who mainly does not know he does not have.  

(E) Ask for a particular and easy action to take: In general, persuasion, as it is a created need, is easier to create small and easy-to-execute actions so that persuasion work is effective because if the person who is doing the work does it with larger actions, it is likely that it will not capture the attention of the person with whom it is being done, emphasizing that these actions should always be done considering the ethical principles of a company and society.

6 0
2 years ago
Sanchez Corporation Selected Financial Information 12/31/18 12/31/17 Cash$20,000 $25,000 Accounts receivable (net) 100,000 110,0
guajiro [1.7K]

Answer:

The current ration for 2018 will be "1.55".

Explanation:

The given values are:

The total current assets of 2018 is:

= $310,000

The total current liabilities of 2018 is:

= $200,000

Now,

The current ratio of 2018 will be:

= \frac{The total \ current \ assets \ of \ 2018}{The \ total \ current \ liabilities \ of \ 2018}

On substituting the estimated values in the above formula, we get

= \frac{310,000}{200,000}

= 1.55

8 0
1 year ago
Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A proposed public good has a total cost of $1,
serg [7]

I THINK ITS MIDDLE FINGERS AT THESE AHOLE MODERATORS

6 0
2 years ago
Other questions:
  • Suppose the united states eliminates its tariff on ball bearings used in producing exports. ball bearing prices in the united st
    11·1 answer
  • Carrie's Car Care receives more than 25% of its total sales revenues from operations outside of the United States. Carrie's woul
    11·1 answer
  • Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000. The machine's useful life is
    7·1 answer
  • A company borrowed cash from the bank and signed a 6-year note at 7% annual interest. The present value for an annuity (series o
    14·1 answer
  • Kobe is part of a group of managers at Earthbound Engineering examining whether the company should offer some significant new se
    10·2 answers
  • Scenario 13-3 Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As
    10·1 answer
  • Skilled versus unskilled labor markets Consider the labor markets for unskilled workers and skilled workers in the United States
    13·1 answer
  • If a project has a net present value equal to zero, then: I. the present value of the cash inflows exceeds the initial cost of t
    5·1 answer
  • Jamie's Motor Home Sales currently sells 1,100 Class A motor homes, 2,200 Class C motor homes, and 2,800 pop-up trailers each ye
    14·1 answer
  • The net profit margin ratio can mathematically be broken down as:______.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!