Question
Cavalier Enterprises has agreed to be acquired by The Fox Hunt for some of The Fox Hunt stock. The Fox Hunt currently has 3,300 shares
Cavalier Enterprises has agreed to be acquired by The Fox Hunt for some of The Fox Hunt stock. The Fox Hunt currently has 3,300 shares of stock outstanding at a price of$32 a share. Cavalier Enterprises has 2,400 shares outstanding at a price of $26 a share. The synergy of the acquisition is $2,800.a. What is the maximum price The Fox Hunt should pay for Cavalier Enterprises ? Suppose The Fox Hunt agrees to pay $65,000 worth of their stock to acquire Cavalier Enterprises. What is the merger premium per share ? What is the value per share of The Fox Hunt stock after the acquisition? (Assume The Fox Hunt can offer stock at its current price $32/share.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the maximum price The Fox Hunt should pay for Cavalier Enterprises and determine the me...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started