Questions
Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm...

Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding.

Firm B Firm T
  Shares outstanding 4,800 1,200
  Price per share $ 44 $ 16

Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $8,900.

a.

If Firm T is willing to be acquired for $18 per share in cash, what is the NPV of the merger?

b. What will the price per share of the merged firm be assuming the conditions in (a)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. If Firm T is willing to be acquired for $18 per share in cash, what is the merger premium?
d. Suppose Firm T is agreeable to a merger by an exchange of stock. If B offers one of its shares for every two of T's shares, what will the price per share of the merged firm be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
e. What is the NPV of the merger assuming the conditions in (d)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)


    

In: Finance

Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm...

Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Firm B Firm T Shares outstanding 5,600 2,200 Price per share $ 45 $ 19 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $9,300. a. If Firm T is willing to be acquired for $21 per share in cash, what is the NPV of the merger? b. What will the price per share of the merged firm be assuming the conditions in (a)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. If Firm T is willing to be acquired for $21 per share in cash, what is the merger premium? d. Suppose Firm T is agreeable to a merger by an exchange of stock. If B offers one of its shares for every two of T's shares, what will the price per share of the merged firm be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) e. What is the NPV of the merger assuming the conditions in (d)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

In: Finance

Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm...

Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms have no debt outstanding. Firm B Firm T Shares outstanding 5,600 2,200 Price per share $ 45 $ 19 Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $9,300. a. If Firm T is willing to be acquired for $21 per share in cash, what is the NPV of the merger? b. What will the price per share of the merged firm be assuming the conditions in (a)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. If Firm T is willing to be acquired for $21 per share in cash, what is the merger premium? d. Suppose Firm T is agreeable to a merger by an exchange of stock. If B offers one of its shares for every two of T's shares, what will the price per share of the merged firm be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) e. What is the NPV of the merger assuming the conditions in (d)? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

In: Finance

Does fiscal policy have a strong impact on aggregate demand? Did the shift of the federal...

Does fiscal policy have a strong impact on aggregate demand? Did the shift of the federal budget from deficit to surplus during the 1990s weaken aggregate demand? Did the government spending increases and large budget deficit of 2008-2011 strengthen aggregate demand? Discuss.

In: Economics

NO COPY AND PASTE. Write your own opinion. Pepsi enters India. 1. How did the company...

NO COPY AND PASTE. Write your own opinion.

Pepsi enters India.

1. How did the company react to the changes in the business environment after the liberalization of the Indian economy in the earl 1990s? Critically comment on the allegations that Pepsi deliberately did not adhere to most of its commitments.

In: Economics

The following transactions affected various funds and activities of the Town of Big Springs. Required Prepare...

The following transactions affected various funds and activities of the Town of Big Springs.

Required

Prepare the journal entries for the funds and activities

Transaction Fund / Governmental Activties General Journal Debit Credit
1. The Fire Department, a governmental activity accounted for within the General Fund, purchased $125,000 of water from the Water Utility Fund, an enterprise fund.
1 General Fund
Governmental Activities
Enterprise Fund
2. A special revenue fund was awarded a $250,000 reimbursement grant. The General Fund advances $62,500 to the special revenue fund for a short-term period to cover initial costs associated with the grant’s purpose.
2 General Fund Interfund Loans Receivable—Noncurrent
Cash
Governmental Activities Cash
Expenses—General Government
Special Revenue Fund Expenses—General Government
Cash
3. The General Fund transferred its annual contribution of $125,000 to the debt service fund for interest and principal on general obligation bonds due during the year.
3 General Fund
Governmental Activities
Debt Service Fund
4. The $5,500 balance in the capital projects fund at the completion of construction of a new Town Hall was transferred to the General Fund.
4 General Fund
Governmental Activities
Capital Projects Fund
5. The General Fund made a long-term loan in the amount of $62,500 to the Central Stores Fund, an internal service fund that services town departments.
5 General Fund
Governmental Activities
Internal Service Fund

In: Accounting

4. Note: the genotype of females is XX; for males is XY. Use a Punnett square...

4. Note: the genotype of females is XX; for males is XY. Use a Punnett square to determine the genotypes and phenotypes of the offspring. a. If a couple has 3 girls, what are possibilities of the 4th child to be another girl?

In: Biology

A 0.05 significance level is used for a hypothesis test of the claim that when parents...

A 0.05 significance level is used for a hypothesis test of the claim that when parents use a particular method of gender​ selection, the proportion of baby girls is less than 0.5. Assume that sample data consists of 78 girls in 169 ​births, so the sample statistic of six thirteenths results in a z score that is 1 standard deviation below 0. Complete parts​ (a) through​ (h) below. Identify the null hypothesis and the alternative hypothesis. What is the value of a? What is the sampling distribution of the sample​ statistic? Is the test​ two-tailed, left-tailed, or​ right-tailed? What is the value of the test​ statistic? What is the​ P-value? What are the critical​ value(s)? What is the area of the critical​ region?

In: Statistics and Probability

The lengths of one-year-old baby girls, in a certain country, can be described using a Normal...

The lengths of one-year-old baby girls, in a certain country, can be described using a Normal distribution with a mean of 29 inches and a standard deviation of 1.2 inches. Use this information to answer the below.

a. What is the probability a randomly chosen one-year girl, from this population, is between 27 and 31 inches tall?

b. How tall is a one-year old girl, from this population, who is in the 85th percentile?

c. What is the z-score (standardized score) for a 28 inch tall girl? .

d. Suppose a random sample of 20 one-year old girls is taken from this population. What is the probability that the average height is less than 29 inches?

In: Statistics and Probability

A 0.1 significance level is used for a hypothesis test of the claim that when parents...

A 0.1 significance level is used for a hypothesis test of the claim that when parents use a particular method of gender​ selection, the proportion of baby girls is greater than 0.5. Assume that sample data consists of 66 girls in 121 ​births, so the sample statistic of six elevenths results in a z score that is 1 standard deviation above 0. Complete parts​ (a) through​ (h) below. Identify the null hypothesis and the alternative hypothesis. What is the value of a? What is the sampling distribution of the sample​ statistic? Is the test​ two-tailed, left-tailed, or​ right-tailed? What is the value of the test​ statistic? What is the​ P-value? What are the critical​ value(s)? What is the area of the critical​ region?

In: Statistics and Probability