Question
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?
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Step: 1
To do this we must first determine the total number of outstanding shares following the merger This ...
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Global Investments
Authors: Bruno Solnik, Dennis McLeavey
6th edition
321527704, 978-0321527707
