by Brian Leakey | Jun 19, 2023 | Finance
You are told that company MM has total earnings for the year 2020 of €6 Millions, a price per share of €30 and 0,5 Million shares outstanding.Company MM would like to acquire company MC, that has total earnings for year 2020 of €1 Millions, a price per share of €50...
by Brian Leakey | Jun 19, 2023 | Finance
The company Tabaco Inc. with the shareholders equity shown below declares a stock dividend of 16 percent.The market value of its common stock is €110 per share, while the par value is 3. Common stock 100.000 €Capital surplus 2.450.000 €Retained earnings 1.000.000...
by Brian Leakey | Jun 19, 2023 | Finance
Mistery Inc. has 3 million shares of stock outstanding that sell for €99 per share.Imagine there are no taxes, what will be the price per share and the new number of shares outstanding after: A five-for-three stock split? A 20 percent stock dividend? A three-for-seven...
by Brian Leakey | Jun 19, 2023 | Finance
Valencia Industrial Orange corporation. has a target capital structure of 40 percent common stock.Its cost of equity is 13 percent, and the cost of debt is 5 percent.You are requested to prepare a DCF calculation considering that the investment takes place in Spain,...
by Brian Leakey | Jun 19, 2023 | Finance
Derby is willing to invest in a new electric car automated production channel with a cost of €60 Million, the expected life of 7 years.The tax rate is 25%, and Derby is considering whether to buy or lease the production Channel, assuming that they could borrow a loan...
by Brian Leakey | Jun 19, 2023 | Finance
The company Noland Inc has 2.5 million common shares outstanding, and they have a new project in mind, the investment needed is €11 million.The current Corp.’s stock price is 45. Noland is debating between two scenarios: Three shares of outstanding stock are...
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