Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC agrees to acquire TGT in a stock and cash deal valued at $17/share, or 5 Billion including the assumption of 1 Billion dollar debt.

image text in transcribed
ABC agrees to acquire TGT in a stock and cash deal valued at $17/share, or 5 Billion including the assumption of 1 Billion dollar debt. The deal consists of $6.80 in cash and 0.7275 of an ABC common stock for each outstanding TGT common share, representing a 65% premium to TGT's closing price on Tuesday. If you own 100 shares of TGT now, upon the successful completion of this deal, your ownership will become (enter A/B/C/D) a $17 in cash b $1,700 in cash C$6.80 cash plus $10.2 worth of ABC stocks d $680 cash plus $1020 worth of ABC stocks Based on the information given, the share price of ABC is Based on the information given, TGT's closing price on Tuesday is Based on the information given, the number of shares of TGT is million

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

Concise 10th Edition

1337902578, 978-1337902571

More Books

Students also viewed these Finance questions