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Gorman is planning on merging with Honeywell. Gorman currently has 400,000 shares of stock outstanding at a market price of $60 a share. Honeywell has
Gorman is planning on merging with Honeywell. Gorman currently has 400,000 shares of stock outstanding at a market price of $60 a share. Honeywell has 50,000 shares outstanding at a price of $52 a share. The merger will create $570,000 of synergy. How many of its shares should Gorman offer in exchange for all of Honeywell's share if it wants its acquisition cost to be $2,940,000? 48,495 48,575 48,555 48,515 48,535
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