Asked by
Daniela Montiel hernandez
on Dec 01, 2024
Verified
TNT, Inc. is considering making a tender offer for Blasting Caps Corp. (BCC) , one of their primary suppliers. The equity section of BCC's balance sheet totals $4.95 million, and BCC stock is currently selling 20% above book value. TNT is planning to offer a 15% premium to make the offer attractive. If BCC has 200,000 shares outstanding, calculate the per share price of the tender offer.
A) $24.75
B) $29.70
C) $54.45
D) $34.16
Tender Offer
A public, open offer or invitation (usually announced in a newspaper) by a prospective acquirer to all stockholders of a publicly traded corporation to tender their stock for sale at a specific price during a specified time.
Book Value
The net value of a company's assets minus its liabilities, as shown on its balance sheet, often used to estimate the company's value.
Shares Outstanding
The total number of shares of a corporation's stock that are currently owned by all its shareholders, including share blocks held by institutional investors.
- Acquire knowledge on evaluating the financial aspects of mergers and acquisitions, focusing on cash flow forecasting and value determination.
- Ascertain the per share value in mergers and acquisitions through the examination of fiscal details.
Verified Answer
JH
Learning Objectives
- Acquire knowledge on evaluating the financial aspects of mergers and acquisitions, focusing on cash flow forecasting and value determination.
- Ascertain the per share value in mergers and acquisitions through the examination of fiscal details.