Question
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 B 7.500 $10.00 Firm A Number of Shares 10,000 Price per Share $25.00 What is the total cost firm A paid when stock financing is used? O $80,000 $82,500 O $83.741 $81,555 0 $75,126
DO NOT COPY FROM CHEGG I NEED A FULL EXPLANATION
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Mathematics Of Finance
Authors: Robert Brown, Steve Kopp, Petr Zima
8th Edition
0070876460, 978-0070876460
