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Boston Company is planning on merging with Marrymount Company. Boston currently has 400,000 shares of stock outstanding at a market price of $28 a share.
Boston Company is planning on merging with Marrymount Company. Boston currently has 400,000 shares of stock outstanding at a market price of $28 a share. Marrymount has 175,000 shares outstanding at a price of $31 a share. The merger will create $1,050,000 of synergy. How many of its shares should Boston offer in exchange for all of Marrymount s share if it wants its acquisition cost to be $5,700,000?
190,397
182,766
175,508
168,412
197,644
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