Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. yqr has a market value of $125 million and 5 milli

YQR has a market value of $125 million and 5 million shares outstanding. HKG has...

80.2K

Verified Solution

Question

Accounting

YQR has a market value of $125 million and 5 million shares outstanding. HKG has a market value of $40 million and 2 million shares outstanding. YQR thinks of taking over HKG with a premium of $10 million. The combined firm will be worth $185 million. If YQR offers 2 million shares of its stock in exchange for the 2 million shares of HKG, what will the stock price of YQR be after the acquisition? What exchange ratio between the two stocks would make the value of a stock offer equivalent to a cash offer of $50 million?

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. For a special case, show that the Improved Euler’s Method may be referred to as...

Advance Math
Q

Using lyrics from a Taylor Swift song, identify 3 self leadership concepts we have studied this...

Operations Management
Q

Please someone assist me with the following problem please! 5. K-nearest-neighbor Given the training data set shown...

Advance Math
Q

Four charges are placed on corners of a square as shown in figure having side...

Physics
Q

Translate the phrase into an w more than 3

Basic Math
Q

Expand the logarithmic expression.log? x?/5y6log?x - log?5 + log?y6log?x - log?5-log? y6log? x + log?...

Basic Math
Q

Consider the region enclosed by the graphs of 2y = 3?, y = 8, and...

Basic Math
Q

Evaluate the definite integral 12x5 3dx 01 x

Algebra
Q

ensure that the proper mix of input chemicals is achieved and that evaporation is controlled....

Accounting
Q

Schefter Mining opera una mina de cobre en Wyoming. Los costos de adquisicin, exploracin y...

Accounting
Q

Explain how accounting for a partnership is different from accounting for a corporation.

Accounting
Q

Texas Horse and Tackle (THT) Inc. makes riding related products in Texas for sale only...

Finance