Question
DIDIC acquires OIFC through merger by incorporation. how to find post-merger expected share price of DIDIC if following information is given: Agreement on swap offered
DIDIC acquires OIFC through merger by incorporation. how to find post-merger expected share price of DIDIC if following information is given:
Agreement on swap offered to OIFC of 0.3488 shares of DIDIC.
Agreement on value of OIFC at $25.2million.
New shares to be issued to OIFC are 86.80 million.
Post merger number of shares of the merged entity are 496 million.
DIDIC equity is $130.3 million, current price is $0.180, current outstanding shares are 409.246 million, book value per share is $0.318
OIFC equity is $27.584 million, current price is $0.095, current outstanding shares are 248.85 million, book value per share is $0.111
Step by Step Solution
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To calculate the postmerger expected share price of DIDIC we need to consider the exchange ratio of ...
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Modern Advanced Accounting In Canada
Authors: Hilton Murray, Herauf Darrell
7th Edition
1259066487, 978-1259066481
