Question

QUESTION 10 Heinz is planning on merging with Kellogg. Heinz currently has 51,000 shares of stock...

QUESTION 10

  1. Heinz is planning on merging with Kellogg. Heinz currently has 51,000 shares of stock outstanding at a market price of $26 a share. Kellogg has 62,000 shares outstanding at a price of $19.50 a share. The merger will create $215,000 of synergy. How many of its shares should Heinz offer in exchange for all of Kellogg s share if it wants its acquisition cost to be $1,320,000?

    44,860

    45,370

    46,244

    47,077

    48,912
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Lenix is planning on merging with Kelly Company. Lenix currently has 80,000 shares of stock outstanding...
Lenix is planning on merging with Kelly Company. Lenix currently has 80,000 shares of stock outstanding at a market price of $31.50 a share. Kelly Company has 52,000 shares outstanding at a price of $26.00 a share. The merger will create $440,000 of synergy. How many of its shares should Lenix offer in exchange for all of Kelly Company share if it wants its acquisition cost to be $1,450,000? 40,117 40,316 40,425 40,531 40,682
Boston Company is planning on merging with Marrymount Company. Boston currently has 400,000 shares of stock...
Boston Company is planning on merging with Marrymount Company. Boston currently has 400,000 shares of stock outstanding at a market price of $28 a share. Marrymount has 175,000 shares outstanding at a price of $31 a share. The merger will create $1,050,000 of synergy. How many of its shares should Boston offer in exchange for all of Marrymount s share if it wants its acquisition cost to be $5,700,000? 190,397 182,766 175,508 168,412 197,644
43) Firm A is planning on merging with Firm B. Firm A currently has 2,300 shares...
43) Firm A is planning on merging with Firm B. Firm A currently has 2,300 shares of stock outstanding at a market price of $20 a share. Firm B has 750 shares outstanding at a price of $15 a share. The merger will create $200 of synergy. How many of its shares should Firm A offer in exchange for all of Firm B's share if it wants its acquisition cost to be $12,000?     43) ______ A) 607B) 593C) 598D) 584E) 600...
Tyxtro and Nova are all-equity firms. Tyxtro has 215,000 shares outstanding at a market price of...
Tyxtro and Nova are all-equity firms. Tyxtro has 215,000 shares outstanding at a market price of $28 a share. Nova has 610,000 shares outstanding at a price of $73.40 a share. Nova is acquiring Tyxtro for $6,950,000 in cash. The synergy value of the acquisition is $1,320,000. What is the net present value of acquiring Tyxtro to Nova? $370,000 $450,000 $430,000 $410,000 $390,000
Bidding firm (Firm B) has 5679 shares outstanding that are currently selling at $47 per share....
Bidding firm (Firm B) has 5679 shares outstanding that are currently selling at $47 per share. Target firm (Firm T) has 1691 shares outstanding that are currently selling at $16 per share. Assume that both firms have no debt outstanding. Firm B has estimated that the value of the synergistic benefits from acquiring Firm T is $8327. Suppose Firm T is agreeable to a merger by an exchange of stock. If B offers three of its shares for every five...
Harrods PLC has a market value of £131 million and 4 million shares outstanding. Selfridge Department...
Harrods PLC has a market value of £131 million and 4 million shares outstanding. Selfridge Department Store has a market value of £33 million and 2 million shares outstanding. Harrods is contemplating acquiring Selfridge. Harrods's CFO concludes that the combined firm with synergy will be worth £179 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, a. what...
TES, Inc. currently has 700,000 shares of stock outstanding at a market price of $35 a...
TES, Inc. currently has 700,000 shares of stock outstanding at a market price of $35 a share. The company wants to raise $3 million in a rights offering. The subscription price is $30 a share. One right will be granted for every share of outstanding stock. What is the value of one right? ) $0.63
Harrods PLC has a market value of £139 million and 5 million shares outstanding. Selfridge Department...
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. Harrods is contemplating acquiring Selfridge. Harrods’s CFO concludes that the combined firm with synergy will be worth £195 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...
Company x has 950,000 shares of stock outstanding. A share of stock currently trades for $112.26....
Company x has 950,000 shares of stock outstanding. A share of stock currently trades for $112.26. Suppose that company x decides to approve an 18% stock dividend. How many shares would company X have after the stock dividend and what would the share price be?
. Light Years Savings Association has just received an offer to merge from Courthouse County Bank....
. Light Years Savings Association has just received an offer to merge from Courthouse County Bank. Light Years’ stock is currently selling for $70 per share. The shareholders of Courthouse County agree to pay Light Years’ stockholders a bonus of $10 per share. a. What is the merger premium in this case? b. If Courthouse County's shares are currently trading for $85 per share, what is the exchange ratio between the equity shares of the two institutions? c. Suppose that...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT