Question
BigCo is planning to acquire SmallCo. Following information are taken from both companies before acquisition. BigCo SmallCo EPS $5 $7 # of shares 10,000 5,000
BigCo is planning to acquire SmallCo. Following information are taken from both companies before acquisition.
|
| BigCo | SmallCo |
| EPS | $5 | $7 |
| # of shares | 10,000 | 5,000 |
| Stock price | $60 | $30 |
BigCo will pay for SmallCo by issuing new shares. There is a one-time $100,000 synergy from this transaction. BigCo. is paying $50 per share of SmallCo. What will the stock price be after the acquisition?
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Interest Rate Swaps And Their Derivatives A Practitioners Guide
Authors: Amir Sadr
1st Edition
0470443944, 978-0470443941
