Examlex
Consider two firms,Bob Company and Cat Enterprises,both with earnings of $10 per share and 5 million shares outstanding.Cat is a mature company with few growth opportunities and a stock price of $25 per share.Bob is a new firm with much higher growth opportunities and a stock price of $40 per share.Assume Bob acquires Cat using its own stock and the takeover adds no value.In a perfect capital market,how many shares must Bob offer Cat's shareholders in exchange for their shares?
Investor Model
A framework or plan that outlines how investors can fund businesses or projects expecting profitability.
Crowdfunders
Individuals who financially support projects, causes, or businesses through crowdfunding platforms, often in exchange for rewards, equity, or nothing at all.
Equity
Ownership interest in a company or property, representing a share of the value after debts are subtracted.
Manufacture Prototypes
The process of creating early models or samples of a product to test its functionality, design, and feasibility.
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