Question
Milton is planning on merging with Vectren. Milton currently has 66,000 shares of stock outstanding at a market price of $47.40 a share. Vectren has
Milton is planning on merging with Vectren. Milton currently has 66,000 shares of stock outstanding at a market price of $47.40 a share. Vectren has 42,000 shares outstanding at a price of $26.80 a share. The merger will create $305,000 of synergy. How many of its shares should Milton offer in exchange for all of Vectren s share if it wants its acquisition cost to be $1,250,000?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
