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3. Dakota Inc. is planning a friendly takeover of Montana Corp. Dakotas stock currently trades at $30 per share (100 million shares outstanding), Montanas stock
3. Dakota Inc. is planning a friendly takeover of Montana Corp. Dakotas stock currently trades at $30 per share (100 million shares outstanding), Montanas stock price is $8 (50 million shares outstanding). Acquisition will be in a form of equity swap with offer price for Montanas stock at $12.00 per share: a) find individual stock prices of both companies after announcement. b) find PPS of a combined firm after the takeover. c) find the premium that acquiring firm will pay (in $ per share).
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