ABC would like to repurchase 50,000 of its ordinary shares. Investor X offered to sell his 20,000 shares at P20 per share. Investor Y offered to sell his 30,000 shares at P21 per share. Lastly, Investor Z offered to sell his 50,000 shares at P22 per share. ABC eventually paid Investors X and Y P21 per share to complete the repurchase. This is a/an * A. Fixed price tender offer B. Dutch auction self-tender repurchase C. Open market operation D. Selective buy-back

ABC would like to repurchase 50,000 of its ordinary shares. Investor X offered to sell his 20,000 shares at P20 per share. Investor Y offered to sell his 30,000 shares at P21 per share. Lastly, Investor Z offered to sell his 50,000 shares at P22 per share. ABC eventually paid Investors X and Y P21 per share to complete the repurchase. This is a/an * A. Fixed price tender offer B. Dutch auction self-tender repurchase C. Open market operation D. Selective buy-back

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2
Roundtree Software is going public using an auction IPO. The firm has received the following bids: Price ($) Number of Shares 14.60 140,000 14.40 200,000 14.20 560,000 14.00 1,000,000 13.80 1,280,000 13.60 880,000 420,000 13.40 Roundtree had previously believed it would issue 1,900,000 shares, however, if Roundtree decides to issue an extra 488,000 shares (for a total of 2,388,000 shares), how much total money will it raise? Roundtree will raise a total amount of $ million (Round to one decimal place.)
1. Swenson Markets would like to sell an additional 1,000 shares of stock using a Dutch auction. The bids received are as follows: (Table below should be interpreted as follows: Bidder A is willing to pay $31 for each share, up to 100 shares while bidder B is willing to pay $29 for each share, up to 100 shares) (Hint: Remember that for Dutch auctions, sell shares first to bidder with willing to pay the highest price and then to bidder with second highest price and so on until all shares are sold. However, every bidder will pay the price of the last bidder to receive any shares. In other words, everyone will pay the lowest price of all successful bidders receiving shares regardless of their own price bids.) Bidder Price A B с 500 D 600 E 400 What is the total amount the issuer will receive from this auction? Ignore costs. Quantity 100 100 $31 $29 $28 $27 $26
Suppose that the price of the target firm 43 is after the announcement. The acquirer's share price is 74 after the announcement, and it is 82 on the deal completion date. The acquirer offers to exchange 0.679 shares of the acquirer for each share of the target at the completion of the deal. Compute the return for a merger arbitrageur assuming that the deal is successful. The answer should be given in decimal form with three decimals. For example, write 0.105 instead of 10.5 or 10.5 % when the correct answer is 10.5 %.
Loki, Inc. and Thor, Inc. have entered into a stock-swap merger agreement whereby Loki will pay a 38% premium over Thor's pre-merger price. If Thor's pre-merger price per share was $40 and Loki's was $52, what exchange ratio will Loki need to offer? The ratio should be shares of Loki for every share of Thor. (Round to two decimal places.) C
Dumo is a trader at ZNF Equity traders and has just identified a stock, UFSI Limited, which is currently trading at R25 per share. Dumo decides to take a long position in at-the money put option and simultaneously buys one share of UFSI stock. The put option expires in 3 months’ time and costs R2.5 per share. Assume a contract consists of one put option. Required: Identify the strategy employed by Dumo above.Tabulate the Profit to the strategy at expiration for the following Exercise price R30; Stock price 20. Exercise price R30; Stock price 35.
The bid-ask rate for GBP/OMR in Britain stock exchange GBP is quoted as GBP1.6675-802/OMR. What will the spread for OMR/GBP? a. All the options are wrong b. -0.756 c. 0.756 d. 1.93 e. 0.762 The quote for CAD in Canada is 3.40082 - 52112 = 1 OMR. What will be the ask rate for OMR/CAD? a. 0.284001 b. 0.294047 c. 0.1203 d. 3.52112 e. All the options are wrong
You purchase one Virgin Galactic March 120 put contract (equalling 1000 shares) for a put premium of $10. You hold the option until the expiration date, when Virgin Galactic stock sells for $123 per share. a) How much is the realized profit/loss on the transaction? b) What is the maximum profit that you can realize on this position? c) What is biggest loss that you can suffer on this position? d) What is the realized profit/loss of your counterparty (the buyer of this call option)? Please briefly explain the calculations as well, thanks!
1. The option is currently A. In-the-moneyB. At-the-moneyC. Out-the-money 2. Determine the In/At/Out- the money by _____ 3, Determine the Intrinsic Value
Dumo is a trader at ZNF Equity and has just identified a stock. UFSI Limited which is currently trading at R25 per share. Dumo decides to take a long position in at-the money put option and simultaneously buys one of the UFSI stock. The put option expires in 3 months' time and costs R2.5 per share. Assume a contract consists of one put option. Identify the strategy employed by Dumo above. Tabulate the Progut to the strategy at expiration for the following, Exercise price R30 ; Stock price 20. Exercise price R30; Stock price 35.