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Both firms are 100% equity-financed. Firm A can acquire firm B for $82,500 in the form of either cash or stock. The synergy value of
Both firms are 100% equity-financed. Firm A can acquire firm B for $82,500 in the form of either cash or stock. The synergy value of the deal is $12,500. Firm A Firm B Number of Shares 10,000 7,500 Price per Share $25.00 $10.00 What is the after merger stock price if the transaction is paid by cash? 0 24,8 0 25.1 25.5 24.9 26.25
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