Question
Please type the answer by computer, so i can see it clearly, thank you!!!! Company ABC intends to purchase Company EFG. ABC now has 1,600
Please type the answer by computer, so i can see it clearly, thank you!!!!
Company ABC intends to purchase Company EFG. ABC now has 1,600 outstanding shares with a $55 share price. EFG has 1,100 outstanding shares with a $20 share price. The acquisition's synergy is anticipated to be $11,000.
1(a) Calculate the cost of acquisition if EFG agrees to a cash offer of $22 per share.
1(b) What exchange ratio between the 2 stocks would make the actual cost of the stock offer
identical to the cost of the cash offer of $12?
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Auditing Cases An Interactive Learning Approach
Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt
7th Edition
0134421825, 9780134421827
