Harrods PLC has a market value of £136 million and 4 million shares outstanding. Selfridge Department Store has a market value of £38 million and 2 million shares outstanding. Harrods is contemplating acquiring Selfridge. Harrods’s CFO concludes that the combined firm with synergy will be worth £194 million, and Selfridge can be acquired at a premium of £10 million. a. If Harrods offers 1.2 million shares of its stock in exchange for the 2 million shares of Selfridge, what will the stock price of Harrods be after the acquisition?

Answers

Answer 1

Answer:

the stock price after the acquisition is $37.30

Explanation:

The computation of the stock price after the acquisition is given below:

= Worth of combined synergy ÷ (outstanding shares = harrods shares)

= £194 million ÷ (4 million + 1.2 million)

= £194 million ÷ 5.2 million shares

= $37.30 per share

hence, the stock price after the acquisition is $37.30

We simply applied the above formula so that the correct answer could come


Related Questions

The Fine Crate Company owns several machines which cut wooden planks for building storage pallets, automatically loading the planks into rolling bins for transportation and handling. Each bin holds 200 planks and a machine can cut and load one bin in an hour, which Fine Crate Company uses planks at a rate of 1000 planks an hour. If the Fine Crate Company were to use a kanban loop to control the filling of the rolling bins, attaching one kanban card to each bin, how many cards should be used to govern this production, assuming a policy variable (safety factor) of 20%?
a. 15
b.6
c. 32
d.11
e. 8

Answers

Answer:

b. 6

Explanation:

Calculation to determine how many cards should be used to govern this production,

Using this formula

Number of cards = [Demand during lead time + Safety stock] / Size of a bin

Let plug in the formula

Number of cards = 1000 * 1 * (1 + 0.2) / 200

Number of cards = 1000*1*1.2 / 200

Number of cards = 6

Therefore The numbers of cards that should be used to govern this production is 6

Why is the control function vital to an organization's success? How can organization's use technology to facilitate the control function?

Answers

Answer:

Controls help to better define an organization's objectives so that employees and resources are focused on them. They safeguard against misuse of resources and facilitate corrective measures. Having good records means management will better understand what happened in the past and where change can be effective.

Explanation:

Based on organization strategies, the control function is vital to an organization's success because "it assists firms to recognize errors and divergences from standards so that corrective actions can be conducted to accomplish goals."

On the other hand, organizations can use technology to facilitate the control function through maintenance of data flow, management of consumers and investors contacts, track processes, and maintenance of employee records.

What is the purpose of Organization Control?

Organization control aims to ensure that the designed function or production is carried out according to established standards.

Hence, in this case, it is concluded that administrative control is vital in business management.

Learn more about organizational control here: https://brainly.com/question/25646443

Jason, Ellen and Frank are business partners. Each of them handles a separate area of the partnership's business. They periodically have partners' meeting where they report to each other on the financial status of their areas and discuss potential new business. Jason's area of business has recently become extremely profitable, and Ellen and Frank are so happy with the new financials that they have not closely questioned Jason about the details especially since the partners continue to receive an equal share of the business profits each of them brings in. Ellen and Frank are shocked when the FBI comes to the office one Friday afternoon and arrest Jason. The FBI also informs Ellen and Frank that the office equipment is being seized and the partnership bank accounts have been frozen. Which of the following is a correct statement of the law?
a. Both Ellen and Frank can face criminal prosecution because the business was operated as a partnership.
b. Ellen and Frank will not be liable for Frank's conduct because Frank independently operated his area of the business.
c. Ellen and Frank should immediately file a Notice of Dissociation so that they will not be liable for Jason's conduct.
d. By not closely questioning Jason about his area of the business, Ellen and Frank will be seen to have ratified Jason's partnership operations.

Answers

Answer:

d. By not closely questioning Jason about his area of the business, Ellen and Frank will be seen to have ratified Jason's partnership operations.

Explanation:

Because Ellen and frank are partners with Jason, they would also both be liable for Franks conduct because the three of them are business partners and have shared profits equally in Jasons area of the business without paying attention to details about the source of the profit. This would make it seem like they were in agreement and accomplices with Jason.

An investor buys a 5-year bond and a 10-year bond. Which statement is true?
O The interest rate risk is the same for both bonds.
O The interest rate risk is higher for the 5-year bond.
O The interest rate risk is higher for the 10-year bond.
O The interest rate risk is negligible given recent actions by the Federal Reserve.

Answers

Answer:

es la primera creo por lo que dice o si no pues soy un desastre en eso perdona casi no se inglés la última vez saque un ocho

The following is information concerning a product manufactured by Ames Brothers. Sales price per unit $ 68 Variable cost per unit 43 Total fixed manufacturing and operating costs (per month) 430,000 a. Determine the unit contribution margin. b. Determine the number of units that must be sold each month to break even. (Round your answer to the nearest whole number.) c. Determine the number of units that must be sold to earn an operating income of $234,000 per month. (Round your answer to the nearest whole number.)

Answers

Answer:

Ames Brothers

a. Unit contribution margin = $25

b. Break-even units

= 17,200 units

c. Break-even units to earn a target profit

= 26,560 units

Explanation:

a) Data and Calculations:

Sales price per unit   $ 68

Variable cost per unit   43

Contribution per unit $25

Total fixed manufacturing and operating costs (per month) 430,000

Target operating income = $234,000 per month

a. Unit contribution margin = $25

b. Break-even units = Fixed cost/Contribution margin per unit

= $430,000/$25

= 17,200 units

c. Break-even units to earn an operating income = (Fixed cost + Target Profit)/Contribution margin per unit

= ($430,000 + $234,000)/$25

= $664,000/$25

= 26,560 units

A low-cost noncontact temperature measuring tool may be able to identify railroad car wheels that are in need of repair long before a costly structural failure occurs. If the BNF railroad saves $63,723 in year 1, and starting year 2, the amounts increasing by $14,768 each year for 5 years, what is the present worth of the savings in year 0 at an interest rate of 10% per year

Answers

Answer:

$420,546.12

Explanation:

Present worth is the sum of discounted cash flows

Present worth can be calculated using a financial calculator

Cash flow in year 1 =

Cash flow in year 2 = 78491

Cash flow in year 3 =93259

Cash flow in year 4 =108027

Cash flow in year 5=122795

Cash flow in year 6  =137563

I = 10%

PW = $420,546.12

To find the PW using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

1a. Suppose that, if their income rises by $100, all households in Normalia raise their spending by $80.
The MPC in Normalia is:____.
MPS in Normalia is:____.
b. Suppose that the MPC in South Pangea is 0.6.
If a South Pangean household earns an extra $100, by how much will they increase their spending?
2. Suppose that the MPC in North Laurasia is .5.
a. What is the spending multiplier for the North Laurasian economy?
b. If the government spends an extra $1000, by how much with the economy grow?

Answers

Answer:

0.2

0.8

40

2

2000

Explanation:

Marginal propensity to consume is the proportion of disposable income that is spent on consumption

Marginal propensity to consume = amount consumed / disposable income

Marginal propensity to save is the proportion of disposable income that is saved

Marginal propensity to save = amount saved / disposable income

MPC + MPS = 1