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:
Prices go down, yield go up
Explanation:
As we know that there is an opposite relationship between the price of the bond and the yield that means if the creditworthiness comes in a doubt so it reduced the price of the bond and at the same time it increased the yield
So as per the given situation as the investor doubt the borrower creditworthiness so the price would fall and yield would go up
hence, the same is to be considered
Answer:
The correct answer is the option E: higher if she sends the jewelry to Thailand in separate boxes because she's risk averse.
Explanation:
On the one hand, if Lori is <em>risk averse</em> then that means that she tends to prefer the less risk that can be in the moment of making a decision without given importance to what she can make of that decision.
On the other hand, the <em>expected utility</em> hypothesis states that Lori will choose the option that will have a greater utility according to the situations.
In conclussion, Lori will choose to send the jewelry to Thailand in separate boxes because she is risk averse and she will prefer to expend more money and lower the risks and by doing that she will have a higher expected utility.
Answer:
Help a friend finish her college application
Explanation:
All these actions will help me activate my network :-
- Ask for an informational interview at your favorite company
- Get coffee with an alumnus from your high school
- Read a detailed book about your dream job
Except :-
- Help a friend finish her college application
Answer:
Account receivable on July 31 = $261,800
Explanation:
We would not be making use of the information for June as the question says 60% is collected in the month of sale and 40% is collected in the following month . Therefore as at July 31, all of june sales would have been collected and won't be outstanding
July credit sales = 85% * $770,000 = $654,500
Collected in July (60%) = 60% * $654,500 = $392,700
Receivable as at 31 July = $654,500 - $392,700 = $261,800
