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Most acquirers pay an acquisition premium for a target. Upon announcement of the bid, the target’s stock price increases, on average, so that the stock price is the same as the price bid by the acquirer.

Future investment plans are important determinants of payout policy because of ________.

(1 point) Where can you verify assignment submissions?

Brutus Company has earnings per share (EPS) of $2.00, 5 million shares outstanding, and a share price of $30.  Brutus is considering buying Buckeye Enterprises, which has earnings per share of $2.50, 2 million shares outstanding, and a share price of $20. Brutus will pay for Buckeye by issuing new shares. There are no expected synergies from the transaction. If Brutus pays no premium to acquire Buckeye, what will the earnings per share be after the merger?

(1 point) Of the three discussion areas, the purpose of ______ is to display inactive discussions.

Brutus Co. expects an EPS of $10 per share next period. Currently, their plowback ratio is 0.5. However, the company has the opportunity to finance a new project that will earn an ROE of 8% by cutting its dividend to $2.50 per share. If the Brutus Co’s expected stock return is 9%, should they cut dividends to make the new investment?

The practice of maintaining relatively constant dividends is called ________.

What enzyme allows human cells grown in the laboratory to continue to replicate long past the time they normally stop dividing?

Selective optimization with compensation is one example of a theory that emerged from the stages of personality development theory.

A firm has a total market value of assets of $600 million that includes $120 million of cash and 10 million shares outstanding. If the firm uses $60 million of its cash to repurchase shares, what is the new price per share? (Assume perfect capital markets.)