BUSINESS COLLEGE

Loki, Inc. and​ Thor, Inc. have entered into a​ stock-swap merger agreement whereby Loki will pay a 39% premium over​ Thor's pre-merger price. If​ Thor's pre-merger price per share was $42 and​ Loki's was $51​, what exchange ratio will Loki need to​ offer?

Answers

Answer 1
Answer:

Answer: 1.15

Explanation:

Premium = 39%

Thor's share price = $42

The compensation to shareholders will be:

= $42 + ($42 × 0.39)

= $42 + $16.38

= $58.38

Loki's share price = $51

We then calculate the exchange ratio which will be:

= $58.38 / $51

= 1.15

Loki will need to offer an exchange rate of 1.15.

Related Questions

Valley Designs issued a 90-day, 6% note for $96,000, dated April 22, to Bork Furniture Company on account. Assume 360 days in a year when computing the interest. a. Determine the due date of the note. July 9 b. Determine the maturity value of the note. $ Feedback The due date is the date the note is to be paid. Remember the interest rate is stated on an annual basis, while the term is expressed as days. Assume a 360 day year. The maturity value is the amount that must be paid at the due date of the note. c1. Journalize the entry to record the receipt of the note by Bork Furniture. If an amount box does not require an entry, leave it blank. Accounts Receivable-Valley Designs Allowance for Doubtful Accounts Feedback The account receivable must be removed from the books and the newly issued note receivable recorded. c2. Journalize the entry to record the receipt of payment of the note at maturity. If an amount box does not require an entry, leave it blank.
As the correlation between assets falls... Group of answer choices portfolio variance is not affected by correlation portfolio variance falls portfolio variance rises
Suppose that there are 50 firms in a monopolistically competitive industry in country A and 50 firms in the same monopolistically competitive industry in country B. If country A and country B engage in international trade, we expect that the total number of firms in this industry: A. will first decrease, then increase. B. will increase. C. will remain unchanged. D. will decrease.
9. Which of the following is true regarding the Comprehensive Annual Financial Report (CAFR)? A) The CAFR has three main sections: introductory, financial, and statistical. B) Required supplementary Information includes a Budgetary Comparison Schedule for the General Fund and all major special revenue funds that have a legally adopted annual budget
Which of the following is not a correct interpretation of a trade-off?Having more of one thing means having less of another.Demand of ice-cream must increase in the summer.There is no free lunch.One must give up something in order to obtain something else.

If the master budget prepared at a volume level of 10,000 units includes direct materials of $40,000, a flexible budget based on a volume of 12,000 units would include direct materials of $48,000.a. True
b. False

Answers

The answer would be true if you really think about it because if 10,000 units is $40,000 then 12,000 units would estimate up to about $48,000

Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine, Michael, and Candice). The couple received salary income of $100,000 and qualified business income of $10,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $200,000 and they sold it for $250,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $16,500 of itemized deductions, and they had $3,550 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children. However, because Candice is 18 years of age, the Jacksons may only claim the child tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.)

Answers

Solution:

(1) Net sales $110,000 $100,000 Wage benefit + $10,000 QBI.  

Winning $50,000 home prices is exempt.  

(2) Deductions for AGI 0.

(3) Adjusted gross income 110,000 (1) − (2)

(4) Regular deduction 24,000 Married registration together.

(5) 16,500 deductions, which have been recorded.

(6) Greater regular allowances or comprehensive allowances 24,000 24,000 Greater of (4) or (5)

(7) Deduction for qualified business income 2,000 $10,000 QBI × 20%

(8) Total deductions from AGI 26,000 (6) + (7)

(9) Taxable income $ 84,000 (3) − (8)

(10) Income tax liability $ 10,359 (84,000 - 77,400) × 22% + 8,907 (see tax rate schedule for married filing jointly).

(11) Other taxes 0

(12) Total tax $ 10,359 (10) + (11)

(13) Credits (6,500 ) Child credits for four children (3 ×$2,000 + 1 × $500)

(14) Prepayments (3,550 )

Tax due with return $ 309 (12) + (13) + (14)

The Orange Lily Law Firm prepays for advertising in the local newspaper. On January 1, Orange Lily paid $3,600 for six months of advertising. How much advertising expense should Orange Lily Law Firm record for the two months ending February 28 under the a. cash basis? b. accrual basis?

Answers

Answer:

a. Cash basis - amount is $3,600

b. Accrual basis - amount is $1,200

Explanation:

a.

Under the cash basis, the amount which will be recorded is as:

In cash basis, it is the method or way of recording the accounting transactions for the revenue and the expenses only when the cash (corresponding) is received or when the payments are made.

So, in this $3,600 is paid, the full amount will be recorded.

b.

Under Accrual basis, the amount which will be recorded as:

In Accrual basis, it is the method or way of recording the accounting transactions for the revenue when it is earned and the expenses is recorded when it is incurred.

So, in this the expense to be recorded for 2 months, it is computed as:

For per month = $3,600 / 6

= $600 per month

For 2 months, it is:

= $600 × 2

= $1,200

Therefore, the amount is $1,200 for 2 months.

xercise 11-3 The controller of Norton Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Month Total Maintenance Costs Total Machine Hours January $2,700 300 February 3,000 350 March 3,600 500 April 4,500 690 May 3,200 500 June 5,500 700 Determine the variable cost components using the high-low method. (Round variable cost to 2 decimal places e.g. 12.25.) Variable cost per machine hour $ LINK TO TEXT LINK TO TEXT Determine the fixed cost components using the high-low method. (Round answer to 0 decimal places e.g. 2,520.) Total fixed costs $

Answers

Answer:

Variable per hour is $7

total variable costs for 700 hours=$4900

Fixed costs is $600

Explanation:

Under the high-low method,variable cost formula is as stated below

variable cost=highest maintenance cost-lowest maintenance/machine hours at highest maintenance cost-machine hours at the lowest maintenance cost

highest maintenance cost is $5500

lowest maintenance is $2700

machine hours at highest maintenance cost is 700 hours

machine hours at lowest maintenance cost is 300 hours

variable cost=($5500-$2700)/(700-300)

variable cost=$7

Fixed cost=total cost-total variable cost

total variable cost for 700 hours =$7*700=$4,900

Fixed cost=$5,500-$4900

fixed cost=$600

When projecting future cash flows of an investment​ ________. A. the initial investment is a significant cash outflow that is treated separately from all other cash flows B. cash flows include depreciation C. cash inflows and outflows are treated​ separately, rather than being netted together D. cash flows are projected by accounting personnel without considering input from other departments

Answers

A. The initial investment is a significant cash outflow that is treated separately from all other cash flows

Your parents are giving you $205 a month for 4 years while you are in college. At an interest rate of .48 percent per month, what are these payments worth to you when you first start college

Answers

Answer:

$8,770.00

Explanation:

In this question we use the present value formula i.e shown in the attachment below:

Data provided in the question

Future value = $0

Rate of interest = 0.48%

NPER = 4 years × 12 months = 48 months

PMT = $205

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after solving this, the answer would be $8,770.00
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