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Adobe is acquiring Figma offering a 20% premium over Figma's pre-announcement price, and the offer is to be paid 50% in cash and 50% in

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Adobe is acquiring Figma offering a 20% premium over Figma's pre-announcement price, and the offer is to be paid 50% in cash and 50% in stock. The preannouncement share price of the companies was $20 (Adobe) and $10 (Figma) per share. Consider the following assumptions: 1. The cash portion of the deal will be financed by issuing new debt. The interest expense on the 10% per 2. The financing fees are 2% of new debt issued, which is amortized over four years; 3. The total write-up of the target's tangible and intangible assets is $300 with straight-line depreciation and amortization over 10 years; 4. Pre-tax deal synergies are $500; 5. The effective tax rate of the combined entity after the acquisition is 20%; Wall Street analysts' estimates, before the deal announcement, for the next fiscal year for both companies are: What is the number of newly issued acquirer shares? What is the expected acquirer EPS after the deal closes (pro-forma EPS) for the next fiscal year

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