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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
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
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