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Mogumogu Co. is considering the acquisition of Pikapika Co. in a stock swap transaction. Currently, Tokidoki Co.s stock is selling for $45/share. Although Pikapika Cos
Mogumogu Co. is considering the acquisition of Pikapika Co. in a stock swap transaction. Currently, Tokidoki Co.s stock is selling for $45/share. Although Pikapika Cos shares are currently trading at $30/shares, the firms asking price is $60/share.
a. If Pikapika accepts Mogumogu terms, what is the ratio of exchange?
b. If Pikapika has 15,000 shares outstanding, how many new shares must Pikapika issue to consummate the transaction?
c. If Mogumogu Co. has 110,000 shares outstanding before the acquisition and earnings for the merged company are estimated to be $450,000, what is the EPS for the merged company?
a. If Pikapika accepts Mogumogu terms, what is the ratio of exchange?
b. If Pikapika has 15,000 shares outstanding, how many new shares must Pikapika issue to consummate the transaction?
c. If Mogumogu Co. has 110,000 shares outstanding before the acquisition and earnings for the merged company are estimated to be $450,000, what is the EPS for the merged company?
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Information Quality Assurance And Internal Control For Management Decision Making
Authors: William R Kinney
1st Edition
0256221618, 9780256221619
