Question
Company A considers acquiring company B. Shares of the company A trade at $30 and there are 5,000 of A shares outstanding. Company B has
Company A considers acquiring company B. Shares of the company A trade at $30 and there are 5,000 of A shares outstanding. Company B has 200 shares outstanding worth $100 each. If A acquires B, then the resulting synergy will amount to $10,000.
Suppose A offers to exchange every Bs share for four shares in the merged company. What will be the total benefit for the existing shareholders of A? its not 5150
Suppose A offers to exchange every Bs share for four shares in the merged company. What will be the total benefit for the existing shareholders of B? its not 4824
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Finance For Growing Enterprises
Authors: Edward W. Davis, Roger Buckland
1st Edition
1138679941, 978-1138679948
