Question
Consider the following premerger information about Firm X and Firm Y Firm X Firm Y Total Earnings $90,914 $43,302 Shares outstanding 44,590 30,055 Per-share values:
Consider the following premerger information about Firm X and Firm Y
| Firm X | Firm Y | |
| Total Earnings | $90,914 | $43,302 |
| Shares outstanding | 44,590 | 30,055 |
| Per-share values: | ||
| Market | $59 | $19 |
| Book | $21 | $12 |
Assume that Firm X acquires Firm Y by issuing long-term debt to purchase all the shares outstanding at a merger premium of $3 per share. Assuming that neither firm has any debt before the merger, what would be the total assets for the new company XY.
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Your Financial Future How To Take Control Of Your Financial Future
Authors: Deloris Lutke
1st Edition
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