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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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