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Acquirer purchases 100% of target by issuing additional stock to purchase target shares No premium is offered to the current target share price Acquirer share

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Acquirer purchases 100% of target by issuing additional stock to purchase target shares No premium is offered to the current target share price Acquirer share price at announcement is $30 Target share price at announcement is $50 Acquirer EPS next year is $3.00 Target EPS next year is $2.00 Acquirer has 4 thousand shares outstanding Target has 2 thousand shares outstanding What is the exchange ratio for the deal? 0.6x 1.5x 1.7k 2.5x Acquirer purchases 100% of target by issuing additional stock to purchase target shares No premium is offered to the current target share price Acquirer share price at announcement is $30 Target share price at announcement is $50 Acquirer EPS next year is $3.00 Target EPS next year is $2.00 Acquirer has 4 thousand shares outstanding Target has 2 thousand shares outstanding Assuming a 40% tax rate, what are the necessary pre-tax synergies needed to break-even? $6,000 $8,000 $10,000 $12,000 Pushdown accounting: Refers to the establishment of a new accounting and reporting basis in an acquired company's parent's financial statements Is where the purchase price is "pushed down" on the acquirer's financial statements and used to restate the carrying value of its assets and liabilities Refers to the establishment of a new accounting and reporting basis in an acquired company's separate financial statements None of the above

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