Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Company A wants to acquire company B with the following data: 30 40 Earnings Available for Common Stock 200,000.00 100,000.00 Number of Shares 40000 60000

image text in transcribed

Company A wants to acquire company B with the following data: 30 40 Earnings Available for Common Stock 200,000.00 100,000.00 Number of Shares 40000 60000 Market Price Per Share The price for company B that was agreed is 4,000,000$ 1. What is the new price per share for company B? What is the premium versus the price of 40$ 3. What is the Share exchange ratio? 4. What is the ownership percentage of company A and company B? 5. What is the post-merger price for the shares of both companies

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

Step: 3

blur-text-image

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

Real Estate Finance

Authors: John P. Wiedemer, ‎ Keith J. Baker

9th edition

324181426, 324181425, 978-0324181425

More Books

Students also viewed these Finance questions

Question

What are the main objectives of Inventory ?

Answered: 1 week ago

Question

Explain the various inventory management techniques in detail.

Answered: 1 week ago