Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please help me answer this question 2. post acqui

Please help me answer this question 2. POST ACQUISITION VALUE CPI, Inc. is acquiring...

90.2K

Verified Solution

Question

Accounting

image

Please help me answer this question

2. POST ACQUISITION VALUE CPI, Inc. is acquiring JW for R470 000 in cash. CPL has 27 000 shares outstanding at a market value of R320 a share. JW has 32 000 shares outstanding at a market price of R140 a share. Neither firm has any debt. The synergy value of the acquisition is R18 000. What is the value of CPI after the acquisition? (3) 3. NUMBER OF NEW SHARES TO BE ISSUED FOR ACQUISITION GM Corporation is being acquired by BKF Ltd. for R1 290 000 worth of BKF Ltd. shares. BKF has 75 000 shares outstanding at a price of R54 a share. GM has 15 000 shares outstanding with a market value of R27 a share. The synergy value of the acquisition is R37 000. How many new shares will be issued to complete this acquisition? 4. AFTER MERGER EARNINGS Firm XY is planning on merging with Firm YZ. Firm XY will pay Firm YZ's shareholders the current value of their shares in shares of Firm XY. Firm XY currently has 39 000 shares outstanding at a market price of R40 a share. Firm YZ has 22 000 shares outstanding at a price of R17 a share. The after-merger earnings will be R78 000. What will the earnings per share be after the merger

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Question 10 V of 14 Step 1 of 1 A wedding planning website asked visitors...

Basic Math
Q

Describe the ways in which deviance (or what is considered deviant) in a society is determined...

Psychology
Q

(c) Powder diffraction experiment: The incident wavelength of a neutron beam is λ = 2.662 Å....

Physics
Q

27 0 If work done in increasing the size of rectangular soap film with dimensions...

Physics
Q

A and B are two concentric metallic shells If A is positively charged and B...

Physics
Q

The set C contains 2 and 3 and is closed under addition.(a) What whole numbers...

Basic Math
Q

an Determine the convergence or divergence of the sequence with the given nth term If...

Calculus
Q

11. Explain the usefulness of the internal audit function to the management of a business....

Accounting
Q

Question 1.1. When is a budget most likely to be effective? (Points : 2) ...

Accounting
Q

Truo Corporation produce un solo producto. El ao pasado, la empresa obtuvo una utilidad operativa...

Accounting
Q

The 2021 Income statement of Adrian Express reports sales of $20,310.000, cost of goods sold...

Accounting
Q

Please Show Work the Center, which is part of the University Healthcare System, is a...

Accounting