Business, 25.10.2019 00:43 EdgeTheWizard
At the beginning of the year great inc.'s management is considering making an offer to buy micro corporation. micro's projected operating income (ebit) for the current year is $35 million, but great believes that if the two firms were merged, it could consolidate some operations, reduce micro's expenses, and raise its ebit to $45 million. neither company uses any debt, and they both pay income taxes at a 35% rate. great has a better reputation among investors, who regard it as very well managed and not very risky, so its stock has a p/e ratio of 12 versus a p/e of 9 for micro. since great's management would be running the entire enterprise after a merger, investors would value the resulting corporation based on great p/e. if micro has 10 million shares outstanding, by how much should the merger increase its share price, assuming all of the synergy will go to its stockholders? show your calculations, if any, and explain your answer.
Answers: 1
Business, 22.06.2019 05:00
What is free trade? a. trade that is not subject to taxes or fees b. trade that governments do not interfere with c. trade with a high level of government regulation d. trade between states in the u.s. b
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Business, 22.06.2019 14:20
For the year ended december 31, a company has revenues of $323,000 and expenses of $199,000. the company paid $52,400 in dividends during the year. the balance in the retained earnings account before closing is $87,000. which of the following entries would be used to close the dividends account?
Answers: 3
At the beginning of the year great inc.'s management is considering making an offer to buy micro cor...
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