Question
How many shares will the buyer have to issue to finance the below transaction? Assume the net debt of the target will be refinanced. a)
How many shares will the buyer have to issue to finance the below transaction?
Assume the net debt of the target will be refinanced.
a) 105.22
b) 46.62
c) 48.05
d) 16.42
Current share price Offer premium Diluted shares outstanding Net debt Transaction fees Total new debt issued Buyer's cash used in transaction Buyer Target 7.62 3.19 18.2% 190.8 800.3 241.0 152.5 10.9 435.7 25.1
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
iTotal Acquisiton Cost Target Share Price x 1 Premium x Shares Transaction Fees 319 x 1 0182 x 1525 ...
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Step: 2
Step: 3
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
