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An acquirer has an issued capital of 300 million shares trading at $6.01. A target company has an issued capital of 500 million shares trading
An acquirer has an issued capital of 300 million shares trading at $6.01. A target company has an issued capital of 500 million shares trading at $2.95. The acquirer expects synergies from an acquisition with a present value of $300 million and offers target company shareholders 0.5 acquirer shares for each target company share. What is the likely post-announcement price of target company stock (to two decimal places)?
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