Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Company A is considering a merger with Company B. A has 43,000 shares outstanding at a market price of $32 a share. B has 12,800

Company A is considering a merger with Company B. A has 43,000 shares outstanding at a market price of $32 a share. B has 12,800 shares outstanding priced at $44 a share. The merger is expected to create $5,400 of synergy. What will be the total value of the merged firm?

A) $446,073 B) $563,200 C) $568,600 D) $1,376,000 E) $1,381,400

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

Entrepreneurial Finance

Authors: J . chris leach, Ronald w. melicher

4th edition

538478152, 978-0538478151

More Books

Students also viewed these Finance questions

Question

Is each operation needed? G=9687

Answered: 1 week ago

Question

F. Conduct a FAIR test of the message.

Answered: 1 week ago