Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Company A can acquire Company B for $120,000 in the form of either cash or shares. The synergy value of the deal is $50,000. Company

Company A can acquire Company B for $120,000 in the form of either cash or shares. The synergy value of the deal is $50,000. Company A currently has 10,000 shares outstanding trading at a price of $21 per share. Company B currently has 8,000 shares outstanding trading at a price of $11 per share. What will the price per share of the post merger firm be if payment is made in shares?

-please show all work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Financial Management

Authors: Eugene F Brigham, Phillip R Daves

9th Edition

032431986X, 9780324319866

More Books

Students also viewed these Finance questions