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

Adobe is acquiring Figma offering a 50% premium over Figma's pre-announcement price, and the offer is to be paid 50% in cash and 50% in stock. The pre-announcement share price of the companies was $20 (Adobe) and $10 (Figma) per share. Consider the following assumptions:

The cash portion of the deal will be financed by issuing new debt. The interest expense on the new debt issued is 10% per year;

The financing fees are 2% of new debt issued, which is amortized over four years;

The total write-up of the target's tangible and intangible assets is $300 with straight-line depreciation and amortization over 10 years;

Pre-tax deal synergies are $500;

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:

Mean Estimates Adobe (acquirer) Figma (target)
Net Income ($) 1,000 700
EPS ($) 1.00 0.70
Diluted Shares Out 1,000 1,000

What is the number of newly issued acquirer shares? [ Select ] ["375", "350", "325", "300", "400"]

What is the expected acquirer EPS after the deal closes (pro-forma EPS) for the next fiscal year? [ Select ] ["$1.21", "$1.30", "$1.10", "$1.05", "$1.15"]

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