Hi there, I want help to solve this questions you are the CEO of Nelson Corporation, and the current stock price is $27.80. Pollack Enterprises announced today that it intends to buy Nelson Corporation. To obtain all the stock of Nelson Corporation, Pollack Enterprises is willing to pay $38.60 per share. At a meeting with your management, you realize that the management is not happy with the offer, and is against the takeover. Therefore, with the full support of your management team, you are fighting to prevent the takeover from Pollack Enterprises. Is the management of Nelson Corporation acting in the best interest of the Nelson Corpo ration stockholders? Explain your reason
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Hi there, I want help to solve this questions
- you are the CEO of Nelson Corporation, and the current stock price is $27.80. Pollack Enterprises announced today that it intends to buy Nelson Corporation. To obtain all the stock of Nelson Corporation, Pollack Enterprises is willing to pay $38.60 per share. At a meeting with your management, you realize that the management is not happy with the offer, and is against the takeover. Therefore, with the full support of your management team, you are fighting to prevent the takeover from Pollack Enterprises. Is the management of Nelson Corporation acting in the best interest of the Nelson Corpo ration stockholders? Explain your reason
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- Arianna just made another fantastic investment: She purchased 400 shares in Great Gains Corporation for $31.5831.58 per share. Yesterday the stock closed at $86.2986.29 per share. In order to lock in her gains, she has decided to employ a stop-loss order. Assuming she set the order at $85.8185.81, what is likely to happen? Why might this not be a wise decision? At what price would you recommend setting the stop-loss order? Why? Question content area bottom Part 1 In order to lock in her gains, she has decided to employ a stop-loss order. Assuming she set the order at $85.8185.81: (Select the best answer below.) A. It is unlikely that the position will be sold as the stock fluctuates around its closing price. B. There is not enough information to answer this. C. It is likely that the position will be sold as the stock fluctuates around its closing price. Your answer is correct. Part 2 At what price would you recommend setting the…You are an accountant for Davanzo Company. The president of the company calls you into her office and says, “I want to ask you about two issues. First, we need to sell one of our investments to raise $1 million because I think I have found a better investment. We could sell the bonds of Company X, which are currently worth $1 million even though they have an amortized cost basis of $950,000. But I don’t want to sell them because I like the steady stream of cash flow we get related to interest. Or we could sell the bonds in that dog, Company Z. These bonds are also worth $1 million, but they cost us $1.2 million. I hate to admit we made such a big mistake, and if they can somehow avoid bankruptcy, we may actually recover our investment. And then there’s that loss. I don’t want to report that. Second, I am going to use the $1 million to buy about 20% of the shares of Company M, but I seem to remember that there is some accounting rule that might affect how much we buy. I was also…Your client, Great Value Hardware Stores, has come to you for assistance in evaluating an opportunity to purchase a controlling interest in a hardware store in a neighboring city. The store under consideration is a closely held family corporation. Owners of 60% of the shares are willing to sell you the 60% interest, 30,000 common stock shares in exchange for 7,500 of Great Value shares, which have a fair value of $40 each and a par value of $10 each.Your client sees this as a good opportunity to enter a new market. The controller of Great Value knows, however, that all is not well with the store being considered. The store, Al’s Hardware, has not kept pace with the market and has been losing money. It also has a major lawsuit against it stemming from alleged faulty electrical components it supplied that caused a fire. The store is not insured for the loss. Legal counsel advises that the store will likely pay $300,000 in damages.The following balance sheet was provided by Al’s Hardware…
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- Bolster Inc. has decided to expand its operations to owning and operating car washes. The following is an excerpt from the conversation between the chief executive officer, Mike O'Brian, and the vice president of finance, John Ibison: Mike: John, have you given any thought to how we're going to manage the acquisition of Swiffer Car Wash? John: Well, the two basic options, as I see it, are to issue either preferred stock or bonds. The equity market is a little depressed right now. The rumor is that the Federal Reserve Bank's going to increase the interest rates either this month or next. Mike: Yes. I've heard the rumor. The problem is that we can't wait around to see what's going to happen. We'll have to move on this next week if we want any chance to complete the acquisition of Swiffer Car Wash. John: Well, the bond market is strong right now. Maybe we should issue debt this time around. Mike: That's what I would have guessed as well. Swiffer Car Wash's financial statements look pretty…You work for a levered buyout firm and are evaluating a potential buyout of Boogle Inc. Boogle's stock price is $18, and it has 3 million shares outstanding. You believe that if you buy the company and replace its dismal management team, its value will increase by 50%. You are planning on doing a levered buyout of Boogle and will offer $25 per share for control of the company. Assuming you get 50% control, your gain from the transaction will be closest to: Answer choices: A) $2.0 million B) $5.0 million C) $4.7 million D) $6.0 millionBill Johnson is a financial analyst working for a futures investment company. Bill's job involves researching and profiling companies to determine if these companies are ideal to invest in on behalf of their clients. Bill discovers that IBN Ltd was about to undertake a $10billion takeover of a rival company called IMF. Bill now knows the exact date that this takeover bid is about to take place, and he knows that he can't disclose this to anyone. But the temptation of making a fortune if someone knew this confidential takeover by IBN is too good to pass. Bill tells Violet to buy shares in IMF right now! But don't tell anyone!!! Violet knows Bill very well, and she knows that Bill is a financial analyst, and he's pretty cool, and he also likes koalas and fast cars. So Violet trusts Bill and buys $5,000.00 worth of shares in the IMF. Violet is happy, and in her excitement, she tells her friends Rupeet and Manjinder to buy shares in IMF right now… but don't tell anyone!!! Rupeet and…
- Your company is finally ready to sell its shares to the public. The manager of your company decided to sell 20% of total shares to an investment bank. In which market this transaction will take place? Select one: a.Secondary market b.Bonds market c.Primary market d.Stock exchange market e.None of the aboveHi, I’m having a hard time understanding how to arrive at the answer of $6,720 for this problem. I can see the answer on the website but I want to understand how to arrive at this number. Thank you for your help. Problem: Garrison holds a controlling interest in Robertson’s outstanding stock. For the current year, the following information has been gathered about these two companies:Garrison uses the initial value method to account for the investment in Robertson. Garrison’s separate operating income figure does not include dividend income for the current year.c. Assume that Garrison owns 70 percent of Robertson’s voting stock. What total amount of income tax expense does a consolidated income statement recognize? Garrison Robertson Separate operating income $ 300,000 $ 200,000 (includes $50,000 intra-entity gross profit in ending inventory) Dividends paid 32,000 50,000 Tax…A privately held corporation, is making plans for future investments that can increase growth. The company’s manager has recommended that the company “go public” by issuing common stock to raise the funds needed to support the growth. The current owners, who founded the firm, are worried that control of the firm will be diluted by this strategy. If the company undertakes an IPO, it is estimated that each share of stock will sell for $6.25, the investment banking fee will be 22 percent of the total value of the issue. If the founders must issue stock to finance the growth of the firm, what would you recommend they do to protect their controlling interest for at least a few years after the IPO?