Problems
1. Three years ago you purchased four thousand shares of Metwa, Inc. for $17 per share. Today Metwa, Inc. is repurchasing its shares through a fixed price tender offer at a price of $45 per share. What are the after tax proceeds you will receive if the capital gains tax is 20%?
2. Why would the management of a company undertake a reverse split?
3. Use the following information to complete question:
Williams Tools Corp (Public Co)
Category Value
Market Price Per Share $12.25
Shares Outstanding 200 million
Debt $600 million
EBITDA $456 million
Net Income $4226 million
Siver Machinery Co.
Category Value
Debt $533 million
EBITDA $250 million
Debt $96 million
Calculate the earnings per share and the price earnings ratio for Williams.