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please answer 1-4! its all ONE question only Q1-Q7 are based on the following information Acquiring Company is considering the acquisition of Target Company in
please answer 1-4!
Q1-Q7 are based on the following information Acquiring Company is considering the acquisition of Target Company in a stock for stock transaction in which Target Company would receive $50.00 for each share of its common stock. The Acquiring Company does not expect any change in its price/earnings multiple after the merger. Acquiring Co. $150,000 Target Co. $30,000 Earnings available for common stock Number of shares of common stock outstanding Market price per share 60,000 20,000 $60.00 $40.00 Using the information provided above on these two firms and showing your work, calculate the following: "1. What is the share exchange ratio? QUESTION 2 2. How many new shares will be issued by Acquiring Company? QUESTION 3 3. What is the post-merger EPS of the combined company? QUESTION 4 4. What is the post-merger share price of the combined company its all ONE question only
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