Need help with this question:

let's assume that Tesla, not Elon Musk, is acquiring Twitter for $54.20 per share consisting of 75% in Tesla shares and 25% in cash (financed with debt at 4.5% (pre-tax)).

Additionally, assume the following:

Tesla's current share price: $855 per share Telsa shares outstanding: as per the cover of the Tesla 10K Tesla 2022E EPS Tesla: $12.44 per share and Twitter 2022E EPS: $1.13 per share

Twitter shares outstanding: as per the cover of the Twitter 10K All existing Twitter debt is assumed and not refinanced (reference the cash and debt assumptions above) $100 million in pre-tax synergies A 21% tax rate.

QUESTION: If Twitter wanted to be guaranteed $54.20 per share at closing as long as Tesla's share price was +/-15% of its current level, it would negotiate a fixed-exchange ratio collar.

True

False