Question
Firm K is planning to acquire Firm L. Firm K currently has 55,000 shares of stock outstanding at a market price of RM28 a share.
Firm K is planning to acquire Firm L. Firm K currently has 55,000 shares of stock outstanding at a market price of RM28 a share. Firm L has 50000shares outstanding at RM16 a share. The acquisition will create RM6000 of synergy. Firm K plans to offer a sufficient number of its shares to acquire Firm L at an acquisition cost of RM8,200. How many total shares will be outstanding for the merged firm?
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Financial Accounting
Authors: Walter B. Meigs, Robert F. Meigs, Mark Bettner, Ray Whittington
9th Edition
0070434360, 978-0070434363
