Answer:
(a) The stock price of Harrods be after the acquisition is £ 31.45
(b) The exchange ratio between the two stocks would be 0.8550
Explanation:
Harrods PLC has a market value of £139 million and 5 million shares outstanding.
Selfridge Department Store has a market value of £41 million and 2 million shares outstanding.
a) If Harrods offers 1.2 million shares of its stock in exchange for the 2 million shares of Selfridge
Shares outstanding = 5 + 1.2 = 6.2 million
Stock price = £ 195 million ÷ 6.2 million = £ 31.45
b) alpha × 195 = 51
alpha = £51 million ÷ £195 million
= 26.15%
(195 ÷ ( 5 +X ) ) × X = 51
51 (5+X) = 195X
255 + 51X = 195X
144X = 255
X = 1.77 million shares
Exchange ratio would be: 1.77 ÷ 2
= 0.8550
Answer:
Option (B) is correct.
Explanation:
Given that,
Lot size = 600
Average demand per week = 100 units
Lead time = 4 weeks
Cycle inventory is determined by dividing the lot size by 2. It is calculated as follows:
= Lot size ÷ 2
= 600 ÷ 2
= 300 units
Pipeline inventories is determined by the product of average demand and lead time from plant to wholesaler.
Pipeline inventories:
= Average demand × Lead time
= 100 × 4
= 400 units
Hence, Total cycle + Pipeline inventories = 300 units + 400 units
= 700 units
Now, if the plant reduces its lead time from 4 to 2 weeks and lot size remains the same, then
Cycle inventory:
= Lot size ÷ 2
= 600 ÷ 2
= 300 units
Pipeline inventories:
= Average demand × Lead time
= 100 × 2
= 200 units
Hence, New Total cycle + Pipeline inventories = 300 units + 200 units
= 500 units
Answer:
$34.8
Explanation:
Profits = sales - costs( variable costs +fixed costs)
In this case : total sales will be price $0.75 x units sold X= 0.75X
Variable costs : =$10 x units sold= $10x
Fixed cost remain $25 as they are not affected by quantity.
profits for the Week
P= (0.75x- 0.10x)-$25
Profit for the week with units sold as 92: x = 92
p= ( {0.75x92} - {0.10x92} )- $25
P= $69 - $9.2- $25
P=$59.8- $25
=$34.8
Answer:
$812.49
Explanation:
Given that
Sale value of ordinary annuity = $4,947.11
Time period = 8 years
Interest rate = 6.50%
So by considering the above information, the annual annuity payment is
$4,947.11 = Annual annuity payment × Present value annuity factor at 6.5% for 8 years
$4,947.11 = Annual annuity payment × 6.0888
So, the annual annuity payment is $812.49
