Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE MAKE SURE TO ANSWER EVERY QUESTION AND BLANK PLEASE!! Suppose LetsMerge Co. is also targeting another company, Yes You Inc., which has a current
PLEASE MAKE SURE TO ANSWER EVERY QUESTION AND BLANK PLEASE!!
Suppose LetsMerge Co. is also targeting another company, Yes You Inc., which has a current value of $79.80 million. Analysts conduct due diligence and estimate the post-merger value of Yes You's equity to be $87.78 million. Yes You has 30.40 million shares outstanding. If the merger analysts expect the synergies to be realized, the maximum price per share that LetsMerge is likely to pay if it is making a cash offer for Yes You Inc. is LetsMerge has 45.60 million shares outstanding that are trading at $7.60 per share. Suppose LetsMerge makes an offer to acquire Yes You at $2.31 per share. If the deal goes through, the post-merger value of Yes You to the LetsMerge shareholders is . The total value of the merged company's equity will be If LetsMerge wanted to issue stock for this merger, how many new shares should LetsMerge issue so that Yes You's former stockholders will own 16.85% of the shares of the merged company? O 5.54 million shares O 11.09 million shares O 9.24 million shares O 7.39 million sharesStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started